STD calls to cost less as TRAI slashes network charge that one operator pays to another by about 50%

New Delhi: Long distance domestic telephone calls are set to become cheaper as regulator TRAI today slashed a network charge that one operator pays to another for carrying the call by about 50 per cent to 35 paise a minute. Carriage charges play an important role in determining the long distance (STD) tariffs.

"The Authority has reduced the ceiling of the domestic carriage charge to 35 paisa per minute from the existing 65 paisa per minute. This should also reduce STD call rates," the Telecom Regulatory Authority of India Secretary Sudhir Gupta told PTI.

Telecom operators pay domestic carriage charge when their customers make an STD call on the network of another company. The STD calls are transmitted across country using network of National Long Distance operators (NLDOs).

"It was observed that there is a large variation i.e., some NLDOs offer carriage charges as low as 9 paise per minute while a few others charge at the ceiling rate which was 65 paise per minute. The potential misuse of a high ceiling is another reason that prompted a review of the carriage charge

regime," TRAI Advisor Arvind Kumar explained.

TRAI will review these charges again in 2017-18 as present networks are transforming in to Internet based network which is expected change carriage cost structure.

"Authority has decided that it shall review the carriage charges regime two years after it has been in force, i.e., the review will be undertaken and concluded in financial year 2017-18," Kumar said.

The regulator yesterday had fixed termination charge on calls made from landline and reduced mobile termination charge by about 30 per cent to 14 paise a minute, making calls cheaper.