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Trai interim order on sharing of STD revenues among operators
New Delhi, July 01: Pending final decision on the interconnection usage charge, telecom regulator Trai has issued an interim order aimed at ending inconsistencies in the Long Distance (STD) tariffs and the existing IUC regime.
New Delhi, July 01: Pending final decision on the interconnection usage charge, telecom regulator Trai has issued an interim order aimed at ending inconsistencies in the Long Distance (STD) tariffs and the existing IUC regime.
It said that payment of IUC charges towards carrier and termination has to be made by originating access provider.
"Since the tariff reduction has been caused by the access provider, his margins must bear the burden of reduction of tariff and originating charges only must be reduced," Trai said in an interim order. The move, though would not have any impact on the STD tariffs, it would have some impact only on the margins of basic telecom service providers.
According to Trai, this decision was necessary till the subscribers were given option to chose the std service provider.
Trai had earlier issued a consultation paper on review of IUC on April 30. One of the issue raised was that when the tariff for std call in a particular slab was lower than the sum of originating, carriage and terminating charges including access deficit charge (ADC), how the amount would be distributed among the three service providers. Trai said this interim order would be replaced by a decision of the authority following the completion of the larger IUC review which is likely to be announced by month end.
Bureau Report
"Since the tariff reduction has been caused by the access provider, his margins must bear the burden of reduction of tariff and originating charges only must be reduced," Trai said in an interim order. The move, though would not have any impact on the STD tariffs, it would have some impact only on the margins of basic telecom service providers.
According to Trai, this decision was necessary till the subscribers were given option to chose the std service provider.
Trai had earlier issued a consultation paper on review of IUC on April 30. One of the issue raised was that when the tariff for std call in a particular slab was lower than the sum of originating, carriage and terminating charges including access deficit charge (ADC), how the amount would be distributed among the three service providers. Trai said this interim order would be replaced by a decision of the authority following the completion of the larger IUC review which is likely to be announced by month end.
Bureau Report