TDSAT Directs TRAI To Rework Telecom Interconnect Charges

[kesav 127]

Way back in 2007, TRAI abolished roaming rental and fixed roaming charges ceiling at Rs.1(incoming)/1(outgoing-local)/1.5(outgoing-STD).

While arriving at those ceiling rates, TRAI used a cost component called "incremental cost for roaming charges".

Now, in this consultation, that component has already gone in as sub-cost of IUC(Interconnect Usage Charges), so TRAI is asking the stakeholders whether for calculating roaming charges ceiling during the current consultation can that component be excluded.

Suppose, if we assume roaming charges ceiling will get reduced to Rs.0.5/0.5/0.6 as an outcome of this consultation even with that component included then

If answered yes by majority stakeholders, Roaming charges ceiling will further get reduced(say Rs.0.4/0.4/0.5) due to that component's exclusion.....

Edited April 30, 2011 by kesav

[chitshar 25]

It seems the GSM cartel is trying to derail this consultation paper to lower IUC charges.

http://www.financialexpress.com/news/Vodafone-moves-TDSAT-on-termination-fees/789137/

http://www.business-standard.com/india/news/auspi-hits-at-vodafone-airtel-for-opposing-iuc-review/134874/on

[kesav 127]

Minimum expected out of Cartel.

That's goal and sole purpose of such cartel formation...

:Contento:

The most atrocious part is that cartel's view will only be propagated through our hopeless paid media.......

Our idiotic media will try with all its might to paint TRAI as an inefficient regulator to please their financiers/bosses....

:'( :'( :'(

Hope it'll help our fellow members to understand the hostile environment under which our regulator(TRAI) is working....

[KanagaDeepan 1,084]

Even if they try all tricks in book, I hope that IUC will be reduced to something like 5p to bring the tariffs to level of 10p--Local and 25p--STD as told by Raja years ago (via STV atleast) imho...

Let us wait and see...

[kesav 127]

Old, new telecom operators fight over IUC

Incumbent telecom operators are at loggerheads with new and CDMA players, with the former gunning for a hike in termination charges while the latter have asked telecom regulator TRAI to reduce it to as low as six paise a minute from 20 paise a minute now.

Termination charges, a part of Interconnection Usage Charges, are a levy paid by one operator to another on whose network a call ends Any change in it has an impact on mobile tariffs.

As per the cost model submitted to Trai for calculation of IUC, Vodafone has suggested that termination charges should be close to 30 paise a minute, compared to 20 paise at present.

The country''s largest telecom operator (by subscriber base), Bharti airtel, has not suggested a rate, but has said the charge "needs to be calculated keeping in mind the international best practices."

Bharti has suggested that the calculation of IUC needs to be done in accordance with the directions of TDSAT and that capex should be taken into consideration, since the industry is highly capex-intensive.

While old operators have suggested revising the interconnection usage charge (IUC) upward, taking into consideration various factors like high infrastructure costs, newer operators are of the view that the charge should be lowered to help further growth of the industry.

Anil Ambani-led Reliance Communications, which offers both CDMA and GSM services, has suggested a termination charge of 6 paise.

New operator Unitech Wireless, which offers services under the Uninor brandname, has suggested an FL-LRIC (Long-Run Average Incremental Cost)-based voice termination rate of 18.3 paise and a pure LRIC-based voice termination rate of 7.7 paise.

Often, IUC changes affect consumer tariffs. A lower IUC could mean lower tariffs for the end consumer.

Termination charges contribute significantly to the revenues of players, especially old operators.

Trai had sought comments from operators on the rate IUC should be charged at and whether the time has come to abolish it.

The issue of IUC has been a bone of contention between new operators and incumbent players for long now. In view of over 90 per cent of subscribers registered with old operators, they have been opposing any move to do away with termination charges, while the new operators are supporting the idea, saying this would give them a level-playing field.

source :: http://telecomtiger.com/Corporate_fullstory.aspx?storyid=11347&section=S162

The responses from cartel is on the expected lines...started shedding crocodile tears....It's very clear form the onset that they'll never survive in true competitive world...they can only survive in the current pro-incumbent skewed (termination charge as high as 20p/minute) regulatory regime.....

TRAI must puts its foot firmly on the ground and must move towards zero-IUC regime so that real competition can take place....

@Kanaga, you're bang on target...your wish(5p) comes very close to the calculation of RCOM's(6 p) and Uninor's(7.7 p)....

Edited May 30, 2011 by kesav

[KanagaDeepan 1,084]

Once TRAI wanted to mandate the per-second billing and as usual Cartel dis-agreed saying "Market forces should decide price".. Now it is chance for TRAI to implement it along with reduction in IUC, say if they decided for 6p/min, then they can put it up as 1p/10 seconds... Just a wishful thinking ...

I guess Docomo's 1p/2sec for 3 months at Rs66 and almost same offer from MTS and Videocon are in expectation of such IUC reduction in pipeline... Let TRAI ignore the Cartel' bluffs and reduce IUC to much low level to keep the competition in market for ever and the new operators may also get some life by doing so...

But I still prefer 5p IUC than removing it totally as it may again lead to death of new operators... For example Cartel will then provide UnLimited calls for Rs999 and new operators have to provide the same for Rs250 and obviously higher ARPU users will remain with Cartel and ALMOST ALL aam-aadmi crowd will reach new operators and their network will die in no-time and once-again competion will be lost in telecom industry then...

Kesav Ji, when will TRAI report the final decision for the IUC charges??? Please inform us here... Thanks...

[kesav 127]

I whole-heartedly second your suggestion of IUC charges in denomination of 'per soecond basis' rather than current 'per minute' basis.

It'll help new operators in paying only for the seconds terminated on old operators rather than current method of 'rounding off to upper minute' for each call terminated.

This could save huge amount of money for new operators for exactly the same IUC charges.

Let us hope TRAI listens.......

Still, calculating IUC charges in 'per minute' basis is quite archaic and does not reflect the level of advacements in precison timing calculations of current technological world.

Edited May 31, 2011 by kesav

[KanagaDeepan 1,084]

After long time, TRAI finally releases consultation paper on IUC (Interconnection Usage Charges).

comments by 18th May, 2011.

Counter-comments by 25th May, 2011.

http://www.trai.gov.in/PR_IUC.pdf

http://www.trai.gov.in/CP_IUC.pdf

Pre-consultation comments :: http://www.trai.gov.in/ConsultationPapers_list_year.asp (click Responses received from the stakeholders on the Pre -Consultation Paper on “Review of Interconnections Usages Charges (IUC))

Let us sincerely hope at least this time TRAI will stick to its deadlines without any extensions.

TRAI must realize this issue is quite pending item and needs to be introduced at the earliest to save the new entrants which in turn saves the competition.

I hope this time pro-incumbents friendly termination charge is either abolished completely or reduced to very small value like 5p/min.

All the dates are gone... Any news on new finalised IUC charges, Kesav Ji????

[chitshar 25]

Even open house discussion has been done on 25th may regarding IUC. I beleive TRAI will come out with new IUC charges in the next 7-14 days.

[kesav 127]

As per SC direction, TRAI has to come out with new IUC regulations by 1st week of June(4 months from the date of that SC order).

As on date, TRAI has completed all formalities(comments, counter-comments,open house discussion), hence TRAI can come with the regulations by this week or next week.

It cannot delay further because the case will come for hearing in SC sooner.

Edited June 6, 2011 by kesav

[ravi_patent 28]

TRAI seeks 3 months more time for finalising IU Charge regime

http://www.thehindubusinessline.com/industry-and-economy/info-tech/article2084671.ece

The telecom regulator TRAI has requested the Supreme Court (SC) for three months extension for completing formulation of the new Interconnection Usage Charge (IUC) regime.

The Apex court had earlier given TRAI four months time on February 4 for coming up with recommendation on telecom interconnection charges which expired on June 4.

The Telecom Regulatory Authority of India had in an application filed on Friday requested the apex court “to grant further 3 months time to TRAI to carry out exercise in framing IUC regulation”.

Meanwhile, the TRAI, which is facing opposition from the new and old established telecom operators over the issues and methods adopted in consultation process to review IUC, has requested the apex court to give suitable directions over it.

It has requested the apex court to “grant suitable direction regarding the procedure and method to be followed by it (TRAI) since there are difficulties/issues with regard to implementation of compliance with the directions of TDSAT in the impugned order”.

Interconnection charges are paid by a telecom service provider for using network of other operators for transmitting and completing a call.

TRAI’s IUC regulation was widely opposed by the state run BSNL and private operators — Bharti, Vodafone, Idea, Aircel, Etisalat DB and CDMA lobby group AUSPI on various grounds.

Last month, the Telecom Disputes Settlement and Appellate Tribunal had dismissed the plea filed by the UK—based telecom operator Vodafone, opposed some of the questions incorporated in the IUC consultation paper of TRAI.

On February 4 this year a three—judge bench of the apex court headed by the Chief Justice Mr S H Kapadia had directed TRAI to frame the IUC regulation afresh as per the directions of the TDSAT.

The TDSAT had on September 29 last year set aside the TRAI’s Interconnection Usage Charges (Regulation), 2009 and asked the telecom regulator to bring out fresh regulations in consultations with various stake holders.

Following it, the TRAI on April 27 issued a consultation paper on IUC. However, a set of GSM companies questioned some of the issued raised in it, contending that it was not in accordance with the directions of TDSAT.

In its 2009 IUC regulation, the TRAI had fixed a mobile termination charge (MTC) at 20 paise per minute for all local and national long distance charges.

It had also raised the MTC for incoming international calls to 40 paise per minute from 30 paise, while putting a ceiling on carriage fee of 65 paise per minute for domestic long distance calls.

[chitshar 25]

The fight between gsm cartel and new operators on IUC has intensified so much that even TRAI is running for cover. No matter what TRAI would have set the charges one party or other would have immediately moved to court against the same.(as vodafone moved to TDSAT after reading consultation paper). So this time TRAI has asked supreme court to advice on the methodology to calculate the cost. So now whatever SC decides would be final as no one can appeal against supreme court decision.

[chitshar 25]

Supreme court gives TRAI 3 months for IUC formulation

The Supreme Court on Friday gave three-month extension to telecom regulator TRAI for completing formulation of the new Interconnection Usage Charge (IUC) regime.

A three-member bench headed by Chief Justice S.H. Kapadia allowed the urgent plea of the Telecom Regulatory Authority of India (TRAI) seeking more time for IUC.

Interconnection charges are paid by a telecom service provider for using network of other operators for transmitting and completing a call.

The Apex court had on February 4 given TRAI four months for coming up with recommendation on telecom interconnection charges, which expired on June 4.

Meanwhile, TRAI today faced intense opposition from GSM operators in the court for not including capital expenditure (CAPEX) while determining fresh IUC. They submitted that the regulator was not acting fairly.

Senior advocate Harish Salve and Abhishek Manu Singhvi appearing for Bharti Airtel and Vodafone, respectively, said that TRAI should add CAPEX and OPEX (operation expenditure) while determining fresh IUC.

Mr. Salve further alleged that the entire exercise of the TRAI to exclude CAPEX in the earlier IUC, was done just to favour an operator, Reliance Communication.

However, the apex court declined to go into it and said that at present it would decide only on TRAI plea.

TRAI, in an application filed last month, had requested the apex court “to grant further 3 months’ time to TRAI to carry out exercise in framing IUC regulation”.

The telecom regulator, facing opposition from the new and established telecom operators over the issues and methods adopted in consultation process to review IUC, had also requested the apex court to give suitable directions over it.

It had requested the apex court to “grant suitable direction regarding the procedure and method to be followed by it (TRAI) since there are difficulties/issues with regard to implementation of compliance with the directions of TDSAT in the impugned order“.

TRAI’s IUC regulation was widely opposed by the state-run BSNL and private operators -- Bharti, Vodafone, Idea, Aircel, Etisalat DB and CDMA lobby group AUSPI on various grounds.

In May, the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) had dismissed the plea filed by the UK-based telecom operator Vodafone, which opposed some of the questions incorporated in IUC consultation paper of TRAI.

On February 4 this year, the apex court had directed TRAI to frame the IUC regulations afresh as per the directions of the TDSAT.

TDSAT had on September 29 last year set aside the TRAI’s Interconnection Usage Charges (Regulation), 2009 and asked the telecom regulator to bring out fresh regulations in consultations with various stake holders.

http://www.thehindu.com/news/national/article2230455.ece

[chitshar 25]

TRAI proposes to abolish iuc charges by 2014

The TRAI has now proposed that the levy proposed for terminating a mobile call on a network be done away with effect from 2014. The development has significance for telcos, especially the larger established players. CNBC-TV18's economic policy editor Siddharth Zarabi reports.

The termination charge is the charge that is paid on the network, which receives the call. So if it’s a call that is terminating on network X emanating from Y, the customer of network Y has to pay this charge.

Currently, it is at 20 paise. This was supposed to have been cut down from 2009 onwards 2010 litigation started and this was challenged.

Now, CNBC-TV18 learns from sources that the TRAI has put up an affidavit at the Supreme Court where it proposes to abolish the mobile termination charge 2014 onwards. So, essentially from 2014 onwards — actually 2015 — perhaps it will become bill and keep.

That means the 20 paise tax will be done away with. As a short-term interim measure, this levy will be reduced by half to 10 paise for the year 2012-13.

Effectively with the termination charge being done away with there will be two key impacts. One, of course, for customers who can now hope to save due to networks not charging them. This termination charge is inbuilt into every call on a per minute basis.

The other bit is that if you look at traffic patterns earlier there was a large outflow of calls from Bharat Sanchar going onto the newer mobile networks. Now we have smaller mobile networks which emanate a lot of calls and these get terminated in the larger established players.

But the fact is that traffic patterns have changed. Outgoing calls are more or less equal those of incoming calls, so effectively the bigger benefit is for customers provided it is passed onto them by the networks and the other will be that it will change the dynamics of the operators who stand to benefit from receiving termination charges those who have large networks who get calls but the numbers on that are not very clear.

For now, we can end by saying that the TRAI has now asked permission from the Supreme Court to go ahead and notify this and once this happens this new scheme will come into effect.

SOURCE:

http://www.moneycontrol.com/news/cnbc-tv18-comments/trai-proposes-to-abolish-mobile-termination-charge-by-3914_608876.html

[chitshar 25]

Call Termination Charges

The Interconnection Usage Charges (IUC) which includes termination charges are wholesale charges payable by on telecom operator to the other for use of the latter’s network for originating, terminating or transiting/carrying a call. The IUC concept has so far proved to be a suitable approach to interconnect pricing in a competitive, multi-operator environment. Though IUC prescribes the wholesale inter-operator charge yet it has bearing on the retail tariff as well.

Telecom Regulatory Authority of India (TRAI) issued a Consultation Paper on review of Interconnection Usage Charges on 27.04.2011 for broader consultation. Subsequently, on the direction of the Hon’ble Supreme Court, TRAI filed the report on Interconnect Usage Charges in October, 2011 in the Hon’ble Supreme Court, TRAI also filed an application on 01.11.2011, seeking permission of Hon’ble Supreme Court to notify the regulations relating to revised interconnection usage charges. However, the court dismissed the application on 13.04.2012. The case was last heard on 10.07.2012. On this date, the court had adjourned these cases with the direction to the registry that the matters be listed before the larger Bench.

This was stated by Shri Milind Deora, the Minister of State in the Ministry of Communication and Information Technology in response to a written question in Lok Sabha today.

SOURCE-http://pib.nic.in/newsite/erelease.aspx?relid=86518

[KanagaDeepan 1,084]

WOW.. The topic once started in 2010, became reality in 2015 only... Yes, now the IUC is reduced from 20p to 14p per min for calls between different wireless networks.. Further the IUC for calls originating from (or terminationg to -- NOT sure) LL to LL or wireless is NIL now... This is a big relief to BSNL wireline business... Here is the news...

Mobile tariffs to go down as TRAI cuts call connect charges

In a bid to boost fixed line phone connections in the country, telecom regulator Trai today 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.

Now, calls made from landline-to-landline or landline-to- mobiles will not include the interconnection charge, which was 20 paise. Trai has also reduced network interconnection usage charges (IUC) on calls made from mobile phones by about 30 percent 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 percent market share followed by MTNL 13.04 percent, Bharti Airtel 12.55 percent, Tata Teleservices 5.98 percent and Reliance Communications 4.39 percent. Videocon’s Quadrant, Vodafone and Sistema Shyam account for 1.2 percent market share. Landline connections of private players are mainly meant for providing broadband connections. In mobile segment, Bharti Airtel leads market with 23.01 percent market share followed by Vodafone 18.93 percent, Idea Cellular 15.95 percent, RCom 11.26 percent, BSNL 8.62 percent, Aircel 8.33 percent, Tata Teleservices 7.01 and Uninor 4.62 percent.

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

SOURCE HERE (bgr dot in)

Edited February 24, 2015 by KanagaDeepan

[pasumark 51]

If fixed line call charges fall below mobile tariffs, people will start to use more of landline when they are in home or office. This will help reduce radition, So encouraging fixed lines is a good move

[Saiesh 12]

This will not benefit the end users

[ramtech 47]

As expected AVOID is opposing the move.

Uninor and other new operators are ready to pass the benefits to the customers

Airtel not yet decided whether to pass the benefits or keep for itself.

(Because it has to compensate the loss incurred on income from termination charges paid by other operators)

[commonman 228]

If AVOID fails to pass on benefit, people with start to port out

[Saiesh 12]

AVOID is like monopoly.

They will not pass benefit to users