TRAI reduces Phone Bills in India 0%/100% 401

TRAI reduces Phone Bills in India

Written by Aravind   |   Posted: 02/24/2015 02:04 PM IST

From Now, all the Indian phone bills are going to reduce as per the announcement of Telecom regulator Trai on Monday. It has removed charges that a landline service provider has to pay to the other service provider for the process of transmitting its customer’s phone calls.

As per the new IUC rule issued on Monday "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 wire line to wireless calls as zero".

Therefore, all the calls made from landline to landline or from landline to any mobiles are not going to include any interconnection charge from now, which was previously 20 Paise. In addition to this TRAI has also reduced all the interconnection usage charges (IUC) on calls done from any mobile phone. Now the IUC charges are dropped from 20 Paisa to 14 Paisa, which was about 30% decrease.

All the Telecom companies are required to pay the interconnection charges to connect a call to the other network. Previously these charges were added in the final price that a subscriber has to pay.

By the increase in mobile phone technology, landline connections are reducing day by day. Among the landline companies BSNL stands in the leading position with 62.71 Percent market share, and followed by MTNL 13.04 percent, Bharti Airtel 12.55 Percent, Tata Tele services 5.98 percent and Reliance Communications 4.39 Percent.

"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.

All the mobile companies have announced that they will cut the Tariffs. By the tariff reduction plan of Trai, all the mobile phone and landline operators are going to enjoy the benefits.

AW: Lizitha

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