Slamming the latest decision of Telecom Regulatory Authority of India (TRAI), Vodafone said the Indian telecom industry was already experiencing the “greatest period of financial stress in its history”.
Leading telecom operators Bharti Airtel and Vodafone has slammed the regulator TRAI’s decision to reduce call connect charges, saying that the move will benefit only one operator and worsen the financial health of stressed industry.
Reliance Industries stock climbed about 4 per cent on Wednesday to Rs 872 after the Telecom Regulatory Authority of India cut down the interconnect usage charge (IUC)–the fee one operator pays to the other for connecting calls between them–by over 50 per cent.
The Telecom Regulatory Authority of India (TRAI) has slashed the call termination charges from mobile to mobile to 6 paise per minute, from the current 14 paise.
In a move that may result in lower call charges, the Telecom Regulatory Association of India (TRAI) today slashed the rate paid by an operator for termination of mobile call on a rival network to 6 paise a minute, from the current 14 paise.
TRAI has come across pesky calls being made using pre-recorded or robo calls with help of computers and various silent and “Can you hear me?” calls. TRAI said telemarketers make silent calls to people and when the person calls the number back, he hears an information message or promotional offer.
India’s telecom subscriber base dipped marginally by 1.3 lakh to 121.07 crore in July. Only three operators – Reliance Jio, Bharti Airtel and state-run BSNL – reported subscriber additions in the month, while eight other operators including Idea Cellular and Vodafone, saw a decline.
The Delhi High Court today sought the response of TRAI on Vodafone India’s appeal against a single judge order dismissing its petition against the consultation process adopted for fixing interconnection usage charges (IUCs) between cellular and fixed line operators.
The Telecom Regulatory Authority of India (TRAI) has suggested to the Department of Telecom (DoT) that all existing operators should be allowed to provide connectivity for machine-to-machine services.
The petition was filed as Vodafone cited a previous Supreme Court ruling on a TRAI regulation, stating that it was not mandated on telecom companies to account for call drops on their networks.
The standoff could impact Apple’s efforts to expand in India, where half a billion smartphones will be sold by 2020. The company has been in discussions with India’s government to open retail stores and secure permission to sell used iPhones.
While the Department of Telecom (DoT) has proposed to hold auction in 2017, the Telecom Regulatory Authority of India has sought opinion on when the next round of auction should be held and whether it should done in a “phased manner”.
The telecom industry has been citing its poor financial health, and falling revenue and profitability to reason that the auctions should be held late next year or early 2019. Nearly 60 per cent of the spectrum remained unsold in the last auction.
According to Trai secretary (acting) SK Gupta, if an operator fails to meet the call drop benchmark in a consecutive quarter, the penalty amount will be hiked 1.5 times and in the third consecutive month it will be doubled.
“We have proposed financial disincentive in the range of Rs 1-5 lakh. It is a graded penalty system depending on the performance of a network,” said Trai Chairman R S Sharma