Telecom Regulatory Authority of India (Trai) today announced slashing of the interconnection usage charge (IUC), paid by an operator for termination of mobile call on a rival network, to 6 paise a minute from the current 14 paise.
The new rate will be applicable from October 1, 2017, and will be completely eliminated from January 1, 2020.
"It was a disastrous move... most of the members had indicated that they would probably move court for redressal in the matter because this type of hit to the financial statements of major operators is clearly not something that they can sustain and that has been made very clear to the regulator," COAI Director General Rajan Mathews said.
Former Trai Chairman Rahul Khullar agreed with Mathews.
Khullar added that the coming days could see a replay of the events in 2007, when the IUC was reduced from 30 paise to 20 paise.
"At that point, IUC was reduced from 30 to 20 (paise) and these guys went to court...so my greatest fear is once again, you are looking at litigation and that is not good for this industry," he said.
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