TRAI to review interconnect charges

Statement from Uninor on TRAI’s review of interconnect charges

“We fully support TRAI’s move to review interconnect charges. Anything that makes competition fair and brings tariffs down is a most welcome move”

“Uninor had earlier submitted its views to the TRAI. We suggest an approach based on the “Avoidable Costs” model that the  European Commission uses to arrive at termination costs. Simply put, this means that an operator calculates the cost it would avoid if it were to not offer any termination facility. This ‘avoidable cost’ alone is then the basis to price termination charges. This ensures that no operator makes any losses in extending interconnect services to another operator and at the same time, does not make any undue gains either by charging more than what it costs.”

“Most established operators charge on-net tariffs that are even lower than the current termination rate. This means that either the current termination rates are higher than costs operators incur or dominant operators are subsidizing their own on-net calls at the expense of younger operators who are forced to pay these termination charges to them. What is this if not a restrictive trade practice.”

“We are not advocating any subsidization or special privileges to young operators. We are saying fair competition. We are simply saying that no operator should make losses on account of extending interconnect service to another, but also not be allowed to make undue profits from a young operator’s compulsions. At the end of it all, we are all here for the customer. Right now, these interconnect charges are standing between what tariffs on voice and sms are and what they can be.”

“As a customer I have a right to call anyone I choose, no matter what operator the receiver of the call is on. As an operator, you should not be making profits from this right or curtailing it by making it more expensive for my operator to give me this freedom”

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