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Mobile termination charges might be cut
By siliconindia
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Wednesday, 04 November 2009, 17:09 IST
New Delhi: In a move which can further reduce the call rates, the government is considering a reduction in mobile termination charges by next year.
India already has the lowest call rates across the world and the recent schemes announced by mobile operators like 'per second billing' has taken this to as low as one paisa per second. The mobile termination charge is paid by a mobile operator to another on whose network the call ends.
"I have requested the operators, the termination charges can come down by 2010 and accordingly tariffs can be reduced," said A Raja, Communications and IT Minister, after his meeting with the CEOs and other senior officials of the service providers. Raja also informed that the local call charges might come down to as low as 10 paisa a minute and STD rates to just 25 paisa per minute.
But the Department of Telecommunications (DoT) would not be able to reduce the termination charges on its own. The DoT would have to refer the matter to the Telecom Regulatory Authority of India (TRAI) for its recommendations. TRAI would then float a consultation paper on the issue and give its recommendations.
Earlier this year, TRAI had reduced local termination charges by 33 percent from 30 paise per minute to 20 paise per minute.
This move would also help new mobile players like Unitech, Datacom and Loop Mobile who comparatively have less number of subscribers on their network. The new operators have been asking for a reduction in mobile termination charges. Some of the operators even had suggested bringing down the termination charges to 10 paise per minute. However, the existing players have been opposing any further reduction in the charges.
Raja has also asked telecom operators to utilize the Universal Service Obligation (USO) fund to enhance telecom infrastructure in the rural areas, adding that the service providers should also work towards increasing the penetration of broadband across the country.
The government has around 
16,000 crore in the USO fund, which is used for subsidizing rural operations. It also has fixed a target to add 10 million broadband subscribers in rural areas in the next two years. Raja will also meet telecom equipment manufacturers and internet service providers in the next two days.
16,000 crore in the USO fund, which is used for subsidizing rural operations. It also has fixed a target to add 10 million broadband subscribers in rural areas in the next two years. Raja will also meet telecom equipment manufacturers and internet service providers in the next two days.
