Telecom Tariffs Set to Go Down as Trai Cuts Interconnection Charges

Advertisement
By Press Trust of India | Updated: 23 February 2015 19:18 IST

In a bid to boost fixed line phone connections in the country, telecom regulator Trai Monday removed charges that a landline service provider has to pay to the other service providers for transmitting its customers' phone calls - a move that is likely to lead to lower tariffs.

Now, calls made from landline-to-landline or landline-to-mobiles will not include the interconnection charge, which was 20 paise.

Trai has also reduced network interconnection usage charges (IUC) on calls made from mobile phones by about 30 percent to 14 paise per call from 20 paise earlier.

Advertisement

"To promote investment in, and adoption of, wireline networks, so that they may become an effective vehicle for the delivery of high-speed Internet in the country, the Authority has decided to prescribe FTC (fixed termination) as well as MTC (mobile termination charge) for wireline to wireless calls as zero," Trai said in the new IUC rule issued today.

Advertisement

Telecom subscribers can't communicate with each other or connect with other networks unless necessary interconnection arrangements are in place.

A telecom company is required to pay interconnection charges when its subscriber make call to subscriber of other network. The charge gets added up in final price that a subscriber has to pay.

Advertisement

"The Authority is of the opinion that in case the MTC is set to zero for wireline to wireless calls, wireline access providers would be able to provide innovative tariff packages (e.g. flat rental plans with unlimited or a significantly large number of outgoing calls)," Trai said.

Similarly, in case the FTC for calls originating from wireless networks and terminating on wireline networks is set to zero, this "would propel wireless access providers to offer cheaper tariffs for wireless-to-wireline calls," Telecom Regulatory Authority of India said.

Advertisement

Landline connections in the country have been declining since the time mobile incoming calls were made free. While mobile subscriber base at the end of 2014 reached all time high at 94.39 crore, landline connections are only 2.7 crore.

State-run telecom companies BSNL dominates landline phone connections with 62.71 percent market share followed by MTNL 13.04 percent, Bharti Airtel 12.55 percent, Tata Teleservices 5.98 percent and Reliance Communications 4.39 percent.

Videocon's Quadrant, Vodafone and Sistema Shyam account for 1.2 percent market share. Landline connections of private players are mainly meant for providing broadband connections.

In mobile segment, Bharti Airtel leads market with 23.01 percent market share followed by Vodafone 18.93 percent, Idea Cellular 15.95 percent, RCom 11.26 percent, BSNL 8.62 percent, Aircel 8.33 percent, Tata Teleservices 7.01 and Uninor 4.62 percent.

Sistema Shyam, Videocon Telecom and MTNL account for about 2 percent mobile service market share.

 

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: India, Tariffs, Telecom, Trai
Advertisement

Related Stories

Popular Mobile Brands
  1. Realme 15T With 50-Megapixel Selfie Camera Debuts in India: See Price
  2. Amazon Great Indian Festival Sale: Deals on Smartphones, Laptops Teased
  3. India's Indigenous Vikram Microprocessor Showcased at Semicon India 2025
  4. Realme 15T 5G India Launch Today: All You Need to Know
  5. Astronomers Propose Rectangular Telescope to Hunt Earth-Like Planets
  1. BCCI Says Crypto, Real Money Gaming Platforms Can’t Bid for Team India’s Title Sponsorship
  2. Scientists Discover Hidden Mantle Layer Beneath the Himalayas Challenging Century-Old Theory
  3. Astronomers Propose Rectangular Telescope to Hunt Earth-Like Planets
  4. Microsoft Testing Native Clipboard Sync Feature to Share Text Between Windows PCs, Android Devices
  5. Su From So OTT Release: When and Where to Watch This Kannada-Language Horror-Comedy Online
  6. Sennheiser Momentum 4 Wireless 80th Anniversary Edition Launched in India With Up to 60 Hour Battery Life
  7. Call of Duty Film Adaption Said to Be a 'Priority' at Paramount, Negotiations on to Acquire Rights
  8. Cannibal Solar Storm May Trigger Auroras as Powerful Geomagnetic Storm to Hit Earth Soon
  9. Apple's iPhone 8 Plus Listed as Vintage Product Ahead of iPhone 17 Launch, 11-Inch MacBook Air Now Obsolete
  10. Hidden Reason Behind Portugal’s Deadly Earthquakes Finally Explained
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.