The global termination rate is a charge paid by worldwide operators to local telecom networks that receive calls.
Indian telcos are expecting a loss of Rs 2000 crores annually owing to the reduction in International Termination Charge (ITC) from the existing 53 paise to 30 paise, a statement from Cellular Operators Association of India (COAI) said on Friday.
"Another issue raised in the CP (consultation paper) was about prescribing International Termination Charge and Prescription of revenue share between Indian ILDO (international long distance) and access provider in the International Termination Charge".
The regulator pointed out that it was doing so to curb the "grey route", which was posing a security threat to the country.
"In view of the significant arbitrage opportunity between ITC and domestic rates, high level of ITC will also give rise to growth of the grey market at the cost of national security and revenues of Indian operators".
Thereafter, a one-day workshop was held following which application service providers (ASP) and ILDOs were asked to furnish information regarding incoming and outgoing ILD voice minutes.
The loss will lead to a loss in revenue to the exchequer, from both licence fee and GST.
The reduction does not benefit any customers and would only benefit foreign carriers at the expense of domestic players, he said. while strongly urging the government and the TRAI to re-examine the regulation, and rescind it. "The Authority is of the view that there is a need of more deliberation on the issue, and therefore, the Authority will issue separate regulation on this issue", TRAI said in September 2017.
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