The incumbent telecom operators favour a cost-based calculation of termination charges that will allow operators to charge each other for ending calls on their network. In contrast, Reliance Jio Infocomm Ltd, which is yet to start commercial services, has proposed the ‘bill and keep’ model, in which companies recover interconnection costs from their own users and in effect does away with interconnection charges. The leading telcos called the consultations on interconnection charges by Trai untimely and premature. In 2015, Trai said it would review termination charges regime in fiscal 2018; however, the authority floated a consultation paper in August this year to review the interconnection charges, suggesting a reduction in the same. The paper has become controversial and has become another issue of contention between Reliance Jio and incumbent telecom operators.

Source: Mint October 19, 2016 18:56 UTC