Telecom Regulatory Authority of India (TRAI) has released a Consultation Paper on ‘Review of Interconnect Usage Charges’ on 05.08.2016.

Interconnection means the commercial and technical arrangements under which telecom service providers (TSPs) connect their equipment, networks and services to enable their customers to have access to the customers, services and networks of other TSPs. Interconnection is extremely important from a consumer perspective. Telecom users cannot communicate with each other or connect with services they demand unless necessary interconnection arrangements are in place. Commercial and technical arrangements must be made to facilitate interconnection between TSPs. A number of issues must be agreed upon by the TSPs or determined by the regulator in order to finalize these arrangements. The most important commercial issue for a successful interconnection arrangement is the Interconnection Usage Charge (IUC). The Authority specified IUC for the first time in 2003. Subsequently, these charges have been revised in 2006, 2009 and 2015.

The Consultation Paper issued today, inter-alia, seeks inputs of the stakeholders mainly on the following broad issues:

(i) Approaches to be used for prescribing domestic termination charges (viz. mobile termination charges and fixed termination charges) for maximization of consumer welfare, adoption of more efficient technologies and overall growth of the telecommunication services sector; and

(ii) Approaches to be used for prescribing international termination charges and international settlement rates in the country for long-term sustainable growth of the International Long Distance (ILD) service segment.

Click here to read the Consultation Paper