Global termination charges (ITC) are payable by an worldwide long-distance operator (ILDO), which carries calls from outside the country, to an access provider in the country in whose network the call terminates.
The move is against national interest as the country will lose precious foreign exchange due to a sharp reduction of 43% in ITC, said Rajan Mathews, director general, Cellular Operators Assocation of India, in his reaction to the move.
Countries such as the US, UK and Germany charge 67 paise, Rs 13.36 and Rs 10.69, respectively, as termination charge per minute for global incoming calls, far higher than India's 53 paise a minute.More news: Gilead Sciences, Inc. (GILD) Position Boosted by Nwam LLC
The worldwide termination charges (ITC) are the charges payable by an ILDO to the access provider in the country in whose network the call terminates.
In a background note, it mentioned existence of grey market which routes the ISD calls made to India by setting up illegal VoIP (voice over internet protocol) gateways which needs to curbed. At present, about 20 per cent worldwide incoming calls terminate in India via grey routes.
Trai also said that the grey route process posed serious security concerns, apart from causing significant leakage in the revenue that would otherwise be accrued with the country and the operators here.More news: Karni Sena members held while protesting outside CBFC office
The loss to Indian telecom service providers on account of reduced ITC is expected to be approximately ₹2,000 crore annually, leading to a loss in revenue to the exchequer from both licence fee and GST.
"The Indian telecom industry is passing through one of its toughest phases with severe financial stress ..."
The industry believes that the regulation from Trai to slash ILD termination rates from is a blow to an already stressed industry. The reduction does not benefit any customers and will only benefit foreign carriers ...More news: Ice-cream bars sold at Aldi recalled over listeria contamination
The issue had formed a part of the consultation paper on Interconnection Usage Charges or IUC but was carved out for separate deliberations by the regulator.