TRAI reduced the fee on international incoming calls, what would be the advantage and loss
TRAI has decided to reduce the international termination fee from 53 paise to 30 paise per minute on foreign incoming calls since February 1. With this step, it will be beneficial to call illegal ISD calls and curb illegal agencies who have been involved in the country's security with illegal earnings. Likewise, it will be the loss that the major telecom companies will have to bear the revenue loss.
What is International Termination ?:
Telecom companies charge international termination charges (ITC) from those foreign operators to bring calls to customers whose calls have been received from the network.
What is TRAI says
Earlier, TRAI had told the need to curb the agencies running illegal activities in the case of foreign incoming calls. In a background note, he had said that some agencies are offering ISD call services to Indian customers through illegal VOIP (Voice Over Internet Protocol) on the Internet and making illegal profits. There is a need to curb this. This threatens the security of the government and telecom companies besides the loss of revenue. There are also many other disadvantages of this additional burden on the route of International Voice Calls.
Three big telecom companies will feel shocked-
By the way, this decision is set to hit the three major telecom companies - Bharti Airtel, Vodafone India and Idea Cellular - because most international calls come to these networks. Lowering the termination rate will reduce their earnings. This is the reason why the Cellular Operator Association of India (COAI) has requested the government and the TRAI to reconsider it, opposing this decision.
COAI Director General Rajan Mathew said in the statement, "The reduction in ITC is against the country's interest. This will damage the country's revenue of Rs 2,000 crore annually to the precious foreign currency and telecom industry. "1COAI has already expressed its opposition."
In a memorandum handed over to TRAI, he had said that every year about 4.5 billion calls are made from India to the foreign countries. The number of calls to India from abroad is more than 88 billion. In India, UK and Germany, the calls from India are charged for the termination fee of 67 paise, Rs 13.36 and Rs 10.69 per minute, respectively. Whereas in India, there is only 53 paisa fee for incoming calls from abroad. This further reduces the losses of Indian telecom companies and foreign companies will benefit.
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