Friday, October 8, 2010

GSM-cos-agree-to-cut-call-moving-charges-BSNL income declines

Since many telcos already offer calls at below these rates, a reduction will lower the amounts they have to pay other operators. This is because, it will reduce the amount they have to pay other mobile phone companies to terminate calls on the latter's network. "If TRAI lowers the ceiling, it can pave the way for the industry to negotiate even lower rates with each other by entering into mutual agreements," says an executive with a GSM-based telco.

But this will impact large operators such as Bharti, BSNL and Vodafone, leading to revenue losses for them. These companies get significant revenues through this fee as the ratio of calls terminating on their networks is far greater than outgoing calls made by their customers to the networks of other operators. 

 
GSM-cos-agree-to-cut-call-moving-charges-BSNL income declines

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