Trai extends charges on outgoing calls by a year

New Delhi: Telecom operators will continue to pay 6 paise per minute for every outgoing call made to their competitors' network till December 31, 2020 following sector regulator Trai's decision announced on Tuesday.

These charges were proposed to become zero from January 1, 2021. Telecom industry body COAI sees it as a relief for the debt ridden sector and expects that continuing with six paise mobile call termination charge will not have any impact on consumers as operators have already absorbed this charge in their recently increased mobile call and data rates.

"For wireless to wireless domestic calls, termination charge would continue to remain as Re 0.06 (paise six only) per minute up to December 31, 2020," The Telecom Regulatory Authority of India (Trai) said.

The rate was reduced to 6 paise with effect from October 1, 2017 from 14 paise charged earlier and it was to become nil from January 1, 2020.

"From January 1, 2021 onwards the termination charge for wireless (mobile) to wireless (mobile) domestic calls shall be zero," the regulator added.

According to estimates, industry players lost Rs 11,000 crore when interconnect usage charge for mobile calls was reduced to 6 paise from 14 paise.

Further, removal of the mobile call termination charges from January 1, 2020 would have impacted the sector by approximately Rs 3,672 crore.

"Keeping in view the above, along with the interests of consumers, and to ensure orderly and sustainable growth of telecom sector, the Authority is of the considered view that the date for implementation of BAK (bill and keep- where no operators bills to competitor for IUC) be deferred by 12 months to make it applicable from January 1, 2021," Trai said.

Levy of mobile call termination implies operator providing free call will have bear the burden of 6 paise per minute for every outgoing call made outside the network and will therefore need to make provision within mobile call plans to recover these charges.