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Wednesday, February 25, 2015

Exclusive: TRAI slashes call termination charges, Landline and Mobile tariffs may come down

Landline and Mobile Tariffs are set to fall as telecom regulator TRAI has announced a cut in charges that companies pay to terminate calls on competing networks. Inter connection charges paid by the operator is one of the major factors that plays in determining the voice calling tariffs.

trai-inter-connection-charges

While the termination charges from fixed line (Landline) phones has been reduced from 20 paise per minute to Zero, the reduction for calls originating from mobile phones is 30% with the new charge fixed at 14 paise. This move will be more beneficial to users of fixed-line phones who may soon get major benefits in free monthly calls and minutes.

Interconnection charges are the charges paid by the operator on whose network the call originates to the operator on whose network it terminates. The more the operator would have to pay as interconnection fee, the higher it would charge the end user in the form of call tariff.

Revised Interconnection Charges
Type of Call Previous Interconnection Charges Revised Interconnection Charges
Cellular to Cellular 20 paise 14 paise
Cellular to Fixed Line (Landline) 20 paise Zero
Fixed Line (Landline) to Cellular 20 paise Zero
Fixed Line (Landline) to Fixed Line (Landline) 20 paise Zero

BSNL CMD Anupam Shrivastava told - "We will pass on the benefits to the consumers and this can happen from as early as April." BSNL has around 1.7 crore fixed-line telephone connections and accounts for over 60% of landline subscribers. "The reduction will be substantial and we have already started working on the proposed tariff plans" , he added.

However, officials from Airtel, Vodafone and Idea Cellular did not comment on the development, saying they are "studying" the measure.

This move is expected to give a boost to the usage of fixed-line telephony which has been in the middle of a severe slowdown due to the high growth in wireless phones. This move will help fixed-line players like BSNL and MTNL to utilize their idle capacities and launch innovative plans.

This cut in call termination charges will increase the demand for Fixed-Line telephones which are more stable and reliable for accessing Broadband Internet Services. 

This will eventually compliment Government's Digital India Programme.

Dear readers, whether this move will increase the Landline Customer base in India? Please share your views and opinions about this latest news via comments with us.

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