TRAI Increased International Interconnect Rate by 33%

by Teleco Analyst on March 10, 2009

trai-logoTelecom Regulatory Authority of India (TRAI) has increased the International interconnect charges by 33% i.e from Rs. 0.3 per minute to Rs 0.4 per minute while it decreased the domestic termination rates from Rs. 0.3 per minute to Rs. 0.2 per minute. TRAI has taken this measure to support the operators in getting extra revenue from the increase in international termination rates in India. In the same press release, they have also decreased the domestic termination rates which i think will result in further decrease in domestic calling rates.

The decrease in domestic calling rates will further accelerate the mobile penetration in the country. Lastly, the TRAI has also decided that the 3G voice tariff in India will be same as that of 2G.

In Pakistan, the international and domestic termination rates are same for cellular operators. The current termination rates for cellular operators in Pakistan is Rs. 1 per minute. I think the government should share larger chunk of the international termination revenue with the cellular operators as they are the real agents of growth in the telecom sector of Pakistan.

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