TRAI cuts inter-connect charge, Landline rates to fall.

NEW DELHI: Now, calls made from landline-to-landline or landline-to- mobiles will not include the interconnection charge, which was 20 paise.

In a bid to boost fixed line phone connections, telecom regulator Trai has 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 also reduced network interconnection usage charges (IUC) on calls made from mobile phones by about 30% to 14 paise per call from 20 paise earlier.

"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," Trai said in the new IUC rule issued today.

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.

"The authority is of the opinion that in case the MTC is set to zero for wireline to wireless calls, wireline access providers would be able to provide innovative tariff packages (e.g. flat rental plans with unlimited or a significantly large number of outgoing calls)," Trai said.

Similarly, in case the FTC for calls originating from wireless networks and terminating on wireline networks is set to zero, this "would propel wireless access providers to offer cheaper tariffs for wireless-to-wireline calls," Telecom Regulatory Authority of India said.

Landline connections in the country have been declining since the time mobile incoming calls were made free. While mobile subscriber base at the end of 2014 reached all time high at 94.39 crore, landline connections are only 2.7 crore.

State-run telecom companies BSNL dominates landline phone connections with 62.71% market share followed by MTNL 13.04%, Bharti Airtel 12.55%, Tata Teleservices 5.98% and Reliance Communications 4.39%.

Videocon's Quadrant, Vodafone and Sistema Shyam account for 1.2% market share. Landline connections of private players are mainly meant for providing broadband connections.

In mobile segment, Bharti Airtel leads market with 23.01% market share followed by Vodafone 18.93%, Idea Cellular 15.95%, RCom 11.26%, BSNL 8.62%, Aircel 8.33%, Tata Teleservices 7.01% and Uninor 4.62%.

Sistema Shyam, Videocon Telecom and MTNL account for about 2% mobile service market share.

Source
 
"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," Trai said in the new IUC rule issued today.
It costs Rs.1.50 per min to call landline from my airtel mobile. How much will it be now ?

The regulation ..
 
Mobile calls to be cheaper by up to 23%; SMS to cost 40% less

New Delhi, Apr 9, 2015, (PTI)

Mobile calls while in roaming will be cheaper by up to 23 per cent, while sending SMSes will cost up to 40 per cent less from May 1 as regulator TRAI has slashed ceiling tariffs.However, following this TRAI order, subscribers will not be able to avail of schemes that allowed them to make calls and send SMSes while in roaming at home circle rates.

"TRAI has reduced ceiling tariffs for national roaming calls and SMS and has mandated telecom service providers to offer a special roaming tariff plan. These changes will come into effect from May 1, 2015," TRAI said in a statement today.

The Telecom Regulatory Authority of India (TRAI) has cut the maximum or ceiling rate that a telecom operator can charge for STD calls on roaming to Rs 1.15 per minute from Rs 1.5. Similarly, national SMS rate has been reduced to 38 paise from Rs 1.5 per SMS.

Also, an operator can charge a maximum 25 paise for each local SMS instead of the current Re 1 per SMS at present.

A telecom operator can charge a maximum 80 paise per minute for a local call instead of Re 1 permitted at present.

For incoming calls during roaming, a mobile customer will be required to pay a maximum of 45 paise only per minute instead of 75 paise now.

On the other hand, in a blow to consumers, the regulator has removed the roaming tariff plan, RTP and RTP-FR, under which the consumer paid the same charges as his home circle or service area while in roaming.

Under 'Roaming Tariff Plan (RTP)' clause, the charges for outgoing voice calls and outgoing SMS, both local as well as long distance (inter-circle), did not change with the location of the subscriber within the country.

The 'RTP-FR' plan allowed the subscriber to pay same charges as his home service area for outgoing local and STD calls as well as SMS during roaming.

In addition, incoming calls were free on roaming in lieu of fixed charges under RTP-FR.
The regulator has mandated operators to introduce a new 'Special Roaming Tariff Plan', which will offer only free incoming calls on payment of a fixed charge, but do away with other features.
 
^^
Telcos ditched the promised full no portability and other imp stuff.

One Nation – Full Mobile Number Portability and work towards One Nation – Free Roaming –Pending
Voice over Internet Protocol, Cloud Computing, Next Generation Network including IPV6 –Pending
Allow trading, sharing, pooling of spectrum – Pending
 
I think that MTNL and BSNL the major players in the fixed line market should sue the companies like Airtel etc as there mobile connections have lead to lower landline usage. The same argument airtel have levelled against OTT players.
 
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