International calling rates set to turn cheaper soon
ISD calls may now cost Rs 2 to 10 a minute
By : pawan bali
Update: 2014-08-20 01:59 GMT
New Delhi: In a move which could cut your ISD bill drastically, telecom regulator has come out with a set of regulations on Tuesday to facilitate the introduction of calling cards for making international calls. The regulations will come into effect immediately.
As per Trai regulations, calling cards companies which will be international long distance operators (ILDO) will pay just 40 paise per minute to wireless telecom companies to access their customers.
Sources in the Telecom Regulatory Authority of India (Trai) believe that by restricting access charge, calling cards companies will be able to provide ISD calls to major countries on average at Rs 2 to Rs10 per minute to mobile users against prevailing tariff of Rs 8 to Rs 30 per minute offered by the telecom companies.
The Trai has restricted access charges, as till now mobile service providers were demanding huge charges from ILDO for allowing facility of calling cards. This had ensured that calling cards were non-starter in India.
Trai said that due to huge margins enjoyed by the telecom service providers on the ISD calls, they have been restricting facility of calling cards for ISD calls from last 14 years.
As per Trai data, for calling to US a customer pays '8 per minute. Out of this ILDO is paid Rs 0.65 per minute. The telecom service providers margin available is Rs 7.35 per minute.
According to the current regulations, the telecom providers will be allowed to charge ILDO only 40 paise as their margin as compared to the earlier Rs 7.35 per minute resulting in a steep fall in ISD call rates.
“In the currently prevailing regime, a customer does not have the option to choose the long distance carrier. This lack of choice potentially reduces consumer welfare since the access service providers are able to charge high retail tariffs for long distance calls,” said Trai.