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Domestic Termination charges reduced to 6 paisa per minute; call charges can drop

In a development that could lead to reduction in call charges, the Telecom Regulatory Authority of India (TRAI) has reduced the Domestic Termination Charges to 6 paisa per minute. It was 14 paisa per minute earlier. Domestic Termination charges are the charges payable by a Telecom Service Provider (TSP) whose subscriber originates the call, to the TSP in whose network the call terminates.

Most of the established operators such as Bharti Airtel, Idea, and Vodafone were against the reduction of the domestic termination charges, as it was a significant source of income for them. Only Reliance Jio was in favor of reducing the domestic termination charges. The reduction in domestic termination charges was announced today by TRAI. TRAI has also stated that domestic termination charges will be completely eliminated from January 1, 2020. The new termination charges of 6 paisa per minute will be applicable for mobile to mobile connections. It would be applicable from October 1, 2017.

The termination charges for other connections such as wire-line to mobile, wire-line to wire-line and wire-line to mobile will remain to be zero. TRAI said that it has taken the decision after consulting all stakeholders including telecom companies and subscribers. Experts said that the move will benefit newcomer Jio, but it would not be so good for established telecom operators.

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