India mobile tariffs may further fall after fee review

Posted on June 24, 2008  /  0 Comments

The Department of Telecommunications (DoT) has asked the Telecom Regulatory Authority of India (TRAI) to review termination charges, a major component of telecom bills.

The charges are paid by the operator, from whose network the call is made, to the operator on whose network the call terminates.

The DoT has asked TRAI to review these charges on a priority basis so that consumers benefit at the earliest. “Given that the central aim of the telecom policy is to provide services at affordable rates, it is suggested that a review of mobile termination charges, based on present and projected costs and traffic, be undertaken by TRAI in a time-bound manner,” the DoT said in a letter to the regulator.

In 2003, Trai had recommended a termination charge of 30 paise per minute. However, the DoT has now reasoned that growth in the number of users, rise in the minutes per usage and declining tariffs will bring operators ample sources of revenue.

Read the full story in ‘Business Standard’ here.

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