The Telecom Regulatory Authority of India will review the interconnect charges this week. The interconnect charges is the amount one telecom operator pays to the other for completing call and SMSes. In the previous review the regulator reduced the interconnect charges which led to the reduction in tariffs.
As reported by PTI, TRAI is planning to start the process of reviewing the IUC (inter usage connection) charges this week. This would be the second time when the regulator will be reviewing the charges. TRAI first reviewed the IUC (inter usage connection) charges in 2009. However, the regulation for the same was framed way back in 2003.
Presently, the regulator has fixed a mobile call termination charge at 20 paise per minute for all local and national long-distance charges. Earlier, this charge varied between 15 to 50 paise depending on the distance of the call. As per this rule the telcos has to pay 20 paise per minute charge to the other company on whose network call has been made. However, TRAI increased the MTC (mobile termination charge) for incoming international calls to 40 paise per minute from 30 paise, while putting a ceiling on carriage fee of 65 paise per minute for domestic long-distance calls.
TRAI also started a consultation process to review IUC in 2011 but the same was challenged by telecom operators.