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Home World Business

TRAI cuts network IUC by about 30pc to 14 paise/call from 20 paise

byCustoms Today Report
25/02/2015
in World Business
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New Delhi: So as to boost fixed line phone connections, TRAI 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.

TRAI has 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. Calls made from landline-to-landline or landline-to-mobiles will not include the interconnection charge, which was 20 paise.

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TRAI said in the new IUC rule, “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.”

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.

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