The latest move by the Telecom Regulatory Authority of India to review the interconnection charges has got new and old telecom operators drawing swords against each other.

While the new players want the regulator to revise the charges downwards, incumbent players want status quo.

Interconnection charges

Interconnection charges are the wholesale charges payable by one telecom service provider to another for use of the latter's network for originating, terminating or transiting or carrying a call. Interconnection is an essential requirement to allow subscribers of one service provider to communicate with the subscriber of other service providers in multi-operator environment.

Though Interconnection Usage Charges are not directly related to retail tariff, they play a major role in determining the level of retail tariffs offered by the service providers.

It also has financial impact on new players as they end up paying out to incumbent players due to imbalance in the subscriber base.

“We fully support TRAI's move to review interconnect charges. Anything that makes competition fair and brings tariffs down is a most welcome move,” said Mr Rajiv Bawa, Vice-President, Corporate Affairs of Uninor.

“No operator should be allowed to make undue profits from a young operator's compulsions. At the end of it all, we are all here for the customer. Right now, these interconnect charges are standing between what tariffs on voice and SMS are and what they can be,” he added.

Current charges

However, incumbent private operators said that the current charges specified by TRAI are already on the lower side and hence there was no scope for further reduction.

They added that no such relaxation was given to them when they entered the market.

TRAI has, meanwhile, asked operators to send in their comments by May 18.

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