Airtel, Vodafone user’s bill could go up if Trai accepts their demand
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Major telecom operators Bharti Airtel, Vodafone and Idea mobiles have requested Tuesday an increase in the use of interconnect load (IUC) the current level of 14 paise per minute on the basis that the end of the other incoming calls companies Telecommunication more than their networks cost 30-35 paise per minute.
Any increase in the UIC’s lead to higher call rates because the tax is included in the total price paid by consumers.
The new entrant Jio Reliance, however, is clearly favorable did not receive any taxes on incoming calls.
UIC is set by the Telecommunications Regulatory Authority of India.
Currently, IUC 14 paise per minute applies to each internal incoming call by the receiving telecommunications operator.
When asked if telecom operators suggested increasing mobile termination rates in the range of 30-35 paise from 14 paise levels today, the President of Trai Sharma responded If so, without naming a particular operator.
All major operators participated. Some operators have sought to reduce, some said to keep constant at the current level. Others said they should increase, “Sharma told a news conference after a one-day workshop with telecom operators.
He said that there were other charges that were part of the UIC but paid the 14 for the treatment of domestic calls dominated the discussion during the workshop due to the large number of calls subject to the present allegations.
It did not give a timetable to reaffirm the UIC’s recommendations, but said they would soon be finalized.
Airtel said the cost of transporting the incoming call is 30 paise and, therefore, the UIC must be increased so they can recover their costs, said a senior industry official who would not be identified.
Vodafone said that the cost of transferring incoming calls in its 30 country network, regardless of license fees and 34 paise later included, revealed.
The company’s Aditya Birla Group, Idea Cellular, said that the cost of transporting the incoming call in its network is about 30 paise according to the methodology used by Trai, while, according to its own calculations, the cost is 35 countries per minute.
The company said it could not recover its cost base at the current pace of the UIC.
Idea is that the IUC is high so that telecom operators can recover the cost of charging incoming calls from other networks.
Trai in a sworn statement in the Supreme Court in 2011 had said that telecom operators should allow time until 2014 to pass the law and maintain the regime. In this case, operators do not take incoming calls into their network, but does not imply any demand from other operators.
The encounter takes place during the War of the current prices between historical players and the new entrant Jio dependence that offers free calls and data at cheap prices.
Established players have been forced to lower prices to protect market share and, therefore, some companies have suffered a loss in recent quarters, others saw their profits fall.