The incumbent GSM operators’ lobby, COAI asked the telecom regulator, Trai to review the recently announced slashing of mobile termination charges arguing that the charges fail to take into account the cost components like capex of operators.

"It disregards the cost elements. As per international best practices, Capex is included as relevant cost for the determination of mobile interconnection charges. The UK, Malaysia, Pakistan, Brazil, Israel consider such costs while determining MTC," said COAI to Trai.  

“The new MTC charge permits only a partial recovery of the cost of ending a call through termination charge by excluding key elements of costs such as cost of capex, thereby, suggesting that the balance should be recovered by way of higher outgoing tariffs. It will make mobile tariff costlier for the customers. NTP (New Telecom Policy) 99 says operators are free to recover their capex from rentals and origination charges," added COAI.

Trai had earlier on March 9 reduced the termination charges to 20 paise from 30 paise. BSNL too has opposed the move.