TRAI’s ruling on reducing the Interconnection Usage Charges [IUC] by 33% favors incumbent operators, really especially the GSM Operators – Bharti Airtel, Vodafone and Idea Cellular. Aditionally, the GSM Lobby had raised their voice to increase the termination charges for ILD / ISD calls and TRAI has reviewed the same and raised it from Rs 0.30 to Rs 0.40 which is a burden on ILD originating Network Operators. The rates are effective April-1st [No this is not an all Fool’s Joke ;-)]
Based on the Risk Assessment of Wireless Operator’s views, recent entrants will have a tough time to compete these incumbents, as they will have very small customer base and have to terminate large number of calls on other well established networks.
What will happen to Virgin Mobile’s Get Paid to Talk / Receive Calls Deal ? You are already aware that Virgin Mobile pays Rs 0.10 / minute for incoming calls. It was possible because the company would get Rs 0.30 / minute of which it would keep Rs 0.20 for itself and pass on Rs 0.10 to its customer. [Assuming Tata Teleservices passed on the entire Rs 0.30 IUC Charges] Now with IUC down by 33%, will it reduce the benefit that it used to pass on ot its customers ? Will new entrants use this gimmick to get more customers on to their platform ?
Hopefully, all the wireless Operators pass on the benefit to customers effective April-1st.