International calls set to become cheaper on new TRAI rule

New Delhi: International long distance call charges are set to come down with the telecom regulator introducing a new measure that will intensify competition in this segment. TRAI has allowed telephone users of one operator to use calling cards issued by another operator.

For example, a Vodafone user will now be able to make calls to the US or UK using Reliance’s global calling card. Until now, a Vodafone subscriber was forced to make ISD calls using only Airtel’s network.

The new system also opens up the game for foreign giants such as BT, AT&T and Orange which can now sell their voice calling cards to retail and enterprise users in India. These multinational firms, at present are offering only data services to large corporates.

TRAI has directed all operators to open up their access networks to enable customers to make the choice and use calling cards of other players.

According to industry watchers, this could trigger a price war in a segment, where tariffs have remained flat over the past few years. In addition, consumers could also get dynamic pricing on various international routes. An operator with more traffic to the Gulf region could offer cheaper calls than another player which has heavy traffic on the US route. Although there are 27 companies in the country with a licence to offer international long distance services, most of them are not offering voice calling facility to retail users. That’s because the telecom company which owns the subscriber does not allow another operator to give access to their services. As a result, ISD tariffs in the country have not declined for many years. A call to the US, for instance, is priced at around Rs 7, which has been at the same level since 2008.

The TRAI is examining a number of other aspects in the long distance telephony segment, including ways to bring competition in the cable landing station segment. There are 12 undersea cables landing on Indian shores but most of the landing stations are controlled by just two players — Bharti Airtel and Tata Communications. According to other ILD players, this has kept the landing charges artificially high which in turn is adding to the bandwidth cost.

TRAI imposes 5 paise termination charge on commercial SMSes

NEW DELHI: In a bid to further clamp down pesky SMSes, the Telecom Regulatory Authority of India (TRAI) will impose a termination charge of 5 paise per SMS on operators from whose networks commercial messages originate. Termination charges are paid by an operator from whose network calls or SMS originate to the one on whose network these communications end. These charges impact tariffs. "The promotional SMS charge shall be Re 0.05 (five paisa only). The Originating Access provider may collect the promotional SMS charge from the registered telemarketer," TRAI said in a notification. After much delay, TRAI in September this year came out with recommendations to stop pesky calls and text messages, directing that no operators will permit the transmission of more than 100 SMSes per day per SIM. The limit is, however, not applicable on 'blackout days' (festive occasions) and a customer is free to send as many messages he desires. Subscribers also have the option of choosing to be under the 'Fully Blocked' category, similar to the 'Do Not Call Registry' to not receive any promotional SMS or call. In case a user opts for 'Partially Blocked' category, he or she will receive SMS in only select categories. At present, some operators charge a termination fee of up to 15 paise per SMS. The current directive would make it mandatory for all operators to charge the termination levy for commercial SMSes. CDMA telecom operators have opposed the imposition of a termination charge on SMS, saying the move is anti-consumer, anti-competitive and not based on a scientific technical study. "Some of the incumbent GSM operators always propagate high termination charges for calls as well as on SMS, as it works in their favour. Imposition of any termination charge on SMS will be anti-competitive, anti-consumer and not based on costs," Auspi General Secretary S C Khanna had said in a letter to the Trai Chairman. He added that prices of bulk SMSes are currently 1.5 to 2 paise and if it shoots up to 7 paise per SMS, this important marketing avenue will be eliminated. "It would result in thousands losing their jobs as a result of this change in regulation, which will add to the plight of lower sections of society," Khanna said. TRAI has exempted select service providers --- primarily the dealers of telecom operators, DTH operators, e-ticketing agencies and social networking sites -- from the limit of 100 SMSes per day per SIM. It also includes transactional SMS' from e-commerce agencies, companies registered with SEBI, IRDA, Association of Mutual Funds in India (AMFI), NCDEX, and MCX; and goods delivery confirmation messages.