Business · India Bureau
Indian telcos push for higher rates on incoming international calls
The country's telecom carriers are seeking to raise international call termination charges to ₹5 per minute, citing currency depreciation pressures. The industry body COAI has argued that rupee weakness has squeezed operator revenues, as these settlements are denominated in US dollars.
LSN India ·
India's telecommunications companies are pressing regulators to approve an increase in international call termination charges, attributing the move to unfavorable currency movements and shrinking profit margins. The Cellular Operators Association of India (COAI) has formally requested that the per-minute rate for terminating incoming international calls be raised to ₹5, a significant hike from current levels.
Carriers contend that the Indian rupee's sustained depreciation over the past year has eroded their dollar-denominated revenues. Since international termination charges are settled in US dollars with global operators, the weaker rupee has translated into lower returns when converted back to Indian currency, the industry representatives said.
The termination charges represent a key revenue stream for Indian telecom operators, compensating them for routing and handling international calls that terminate on their networks. Industry officials argue that the current rate structure no longer reflects the economic realities facing carriers, particularly given currency headwinds and rising operational costs.
The plea marks the latest attempt by India's telecom sector to secure regulatory relief as operators grapple with competitive pressures and macro-economic challenges. The matter is expected to be considered by the Department of Telecommunications and the Telecom Regulatory Authority of India.