TRAI may consider scrapping interconnection fee, mulls seeking views

NEW DELHI: The telecom regulator is considering a review of the charge that telecom operators pay each other for text messages — possibly even discarding it — a move that could trigger another clash with financially strapped older telcos.

The regulator is considering issuing a consultation paper to seek stakeholder views on revising the interconnection usage charge (IUC) for SMS, which may include the possibility of scrapping the charge altogether, people aware of the matter said.

The IUC for text messages is paid by a telco to the network receiving the SMS. It is similar to the IUC for voice calls, which was recently reduced by 57%.

“There’s discussion to review the IUC on messages… it has not been changed for a long time and the industry situation has changed since then,” said one person familiar with the thinking at the Telecom Regulatory Authority of India.

Scrapping the charge can be considered for both commercial and non-commercial messages because the present levels are already low, the person said.

Trai is still discussing the matter internally and a final call is yet to be taken, the people said.

Telecom Regulatory Authority of India