Lok Sabha Question No. 3693 (UNSTARRED), answered on 2017-08-09
Subject: Interconnection Usage Charges
Ministry: COMMUNICATIONS
Asked by: C. MAHENDRAN, RAMSINH PATALYABHAI RATHWA, RAVINDRA BABU  PANDULA

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA UNSTARRED QUESTION NO.3693 TO BE ANSWERED ON 9 TH  AUGUST, 2017

## INTERCONNECTION USAGE CHARGES

3693. SHRI C. MAHENDRAN: SHRI RAMSINH RATHWA: DR. RAVINDRA BABU:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether the Interconnection Usage Charges (IUC) are imposed on telecom subscribers by various Telecom Service Providers (TSPs) and if so, the details thereof, TSP-wise along with the revenue accrued to the TSPs during each of the last three years on account of IUC, TSP-wise;
- (b) whether  the  IUC  in  many  advanced  countries  is  negligible  or  zero  and  if  so,  the  details thereof, country-wise;
- (c) whether the Government has issued any consultation paper on IUC and/or proposes to bring down the  IUC to  zero  level  so  as  to  give  cheaper  call  rates  to  TSPs'  subscribers  and  if  so,  the details in this regard and the time by which the said charges are likely to be reduced along with the steps taken by the Government in this reagrd;
- (d) whether many TSPs have urged the Government to increase the IUC and if so, the details thereof  and  the  reasons  given  by  each  of  them  in  this  regard  along  with  the  reaction  of  the Government thereto; and
- (e) the  likely  impact  of  the  said  increase  in  the  IUC  across  different  economic  strata  of  the society especially the lower economic strata?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

(a) to (e) No, Madam. The Interconnection Usage Charge (IUC) is a charge applicable for use of  point  of  interconnection  between  the  operators  and  is  governed  by  the  Interconnection  Usage Charge Regulation issued by Telecom Regulatory Authority of India (TRAI) from time to time.

The details of mobile termination charges in various countries are annexed (Annexure).

In  April,  2015,  a  service  providers  association,  inter-alia,  requested  TRAI  to  review  the Interconnection Usage Charges and sought for an increase in the termination charges. Subsequently, some of the TSPs have demanded increase in termination charges on account of increased cost of setting up network infrastructure as well as asymmetric traffic.

On  5 th August,  2016,  TRAI  has  initiated  a  consultation  process  by  issuing  a  consultation paper  on  'Review  of  Interconnection  Usage  Charges'  with  a  focus  on  review  of  domestic termination  charges,  international  settlement  rates  and  international  termination  charges  in  the country. TRAI has received comments/ counter comments from the stake holders and held Open House Discussions on the issues on 20 th July 2017 before finalizing its decision. The TRAI is seized of the matter.

The current market competition will ensure lowest price to the customers and there may not be  any  perceived  impact  on  the  end  customer  as  the  IUC  is  an  internal  settlement  between operators.

## Annexure

As per the information published by TRAI in its consultation papers No. 17/2016 on 'Review of  Interconnection  Usage  Charges'  dated  05 th August,  2016,the  details  of mobile termination charges in various countries are as below:

|   S. No. | Name of Country          | Mobile Termination Charges per minute   | Date of Effect   |
|----------|--------------------------|-----------------------------------------|------------------|
|        1 | Australia                | AUD 0.017                               | August, 2015     |
|        2 | Norway                   | NOK 0.065                               | January, 2017    |
|        3 | Portugal                 | 0.85 Eurocents                          | August, 2015     |
|        4 | South Africa             | R 0.13                                  | October, 2016    |
|        5 | Saudi Arabia             | SAR 0.15                                | February, 2015   |
|        6 | United Kingdom           | 0.477 Europence                         | April, 2017      |
|        7 | OECD Countries (Average) | USD 0.0197                              | November, 2014   |

## Where -

AUD

- Australian Dollar

NOK

- Norwegian Krone

R

- South African Rand

SAR

- Saudi Arabia Riyal

USD

- United States Dollar

OECD - Organization for Economic Cooperation and Development

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