Trai cuts interconnection charges to 6 paisa per minute from 14 paisa per minute which will be applicable from 1st of october , 2017 and will reduce to 0 paisa from 1 jan , 2020 after which interconnection calls i.e. calls from reliance jio to airtel or airtel to vodafone will become free of cost which will benefit the customers .
” Mobile-to-mobile termination charge reduced to 6 paisa per minute from 1 October 2017 “
” For other types of calls, the termination charge will remain zero. “
” Termination charge for all types of domestic calls will be zero from 1 January 2020. “
This decision has benefit reliance jio which has make a revolution is the indian telecom industry after its entry from 1 september 2016 and made calls from jio to any network free but the Trai decision doesn’t seem to make jio competitors Airtel , Vodafone , Idea happy as they said that they will go to court against the step.
Now you must have question like -What are Interconnection Charges ?
Interconnection Usage Charges (IUC) are wholesale charges payable by a Telecom Service Provider (TSP) to another telecom service provider (TSP), for terminating or transiting/carrying a call from its network to the network of the
receiving TSP. The IUC mainly consists of termination charges, origination charges and carriage/transit charges.
According to industry estimates, No. 1 telecom operator Bharti Airtel will lose around 2,500 crore a year due to this decision . Vodafone India and Idea Cellular, ranked second and third, the annual loss would be around 1,500 crore and 1,300 crore, respectively. However, Jio is set to save more than 5,000 crore as customer base is increasing day by day , while RCom and Aircel will benefit by a marginal 250 crore each.
Trai said the move to cut IUC was justified at a time when communication apps are becoming more popular, leading to a reduction in voice traffic.
“Thus the cost of the service providers would now need to be borne by the feature phone users who do not have the ability to use OTT (over-the-top) applications,” Trai said. “This would give rise to a peculiar situation where cost of services for lowcost feature phone users would actually end up being higher than cost of services for smartphone users… The BAK regime would encourage operators to invest in new technology and bring down the cost of voice services close to nil.”
what are your views on this decision guyz ? Let me know in the comment section below ….