Telecom regulator TRAI has announced a cut in charges that companies pay to terminate calls. The termination charges for fixed line phones have been cut down from 20 paise per minute to zero. For mobile phones the rates for wireless to wireless calling have been slashed down to 14 paise from 20 paise per minute. From wireline to wireless, the rates have been brought down from 20 paise to zero per minute and for international incoming calls to wireless and wireline the charges have been escalated from 40 paise to 53 paise per minute.
Due to this mobile and landline tariffs are expected to decline significantly. Users of fixed line phones may also benefit from this as they may get free monthly calls and minutes.
In 2009, some Telecom operators were able to pose a stay order against termination charge but this was nullified by Supreme Court in 2011. This process was again initiated by TRAI last year.
Telecom analysts say bigger operators may follow the suit when small players will begin cutting tariffs.