Indian regulator TRAI has eliminated fixed line termination rates and cut mobile termination charges by around 30% in a bid to promote investment in networks and stimulate reduced tariffs.
The regulator has abolished the 0.20 rupee ($0.003) termination rate for both landline-to-landline and landline-to-mobile calls, India todayreported.
With the move, TRAI hopes to encourage investment in wireline networks as well as consumer adoption of wireline services.
At present India has only around 27 million wireline connections, and the total number of subscribers has been in decline since incoming mobile calls were made free. This compares to a total of 943.9 million mobile subscriptions.
State-owned operator BSNL has a majority of the fixed-line market with a total share of around 62.7%, and fellow state operator MTNL is in second place with a 13% share.
TRAI has also reportedly determined to reduce mobile network interconnection charges from 0.20 rupees to 0.14 rupees to encourage lower tariffs.