Trai asks telcos for business details for IUC calculation

Trai asks telecom players to submit details of business models on which they have proposed to calculate mobile termination charges (MTC).

PTI | May 26, 2011



The Telecom Regulatory Authority of India on Wednesday asked telecom players to submit details of their business models on which they have proposed to calculate mobile termination charges (MTC).

MTC is a vital component of telecom Interconnect Usage Charge (IUC). These charges are paid by a telecom service provider for using network of other operators for transmitting and completing a call.

RComm has proposed that MTC should be around 6 paise instead of 37 paise proposed by a GSM player.

"We can share with you details the way we have calculated it," RComm representative C S Rao said during an open house discussion organised by Trai to review IUC.

Vodafone Essar representative said that they would like to see business model of RComm for calculating MTC, but Rao said that business details have to be kept confidential.

Vodafone earlier stressed that the documents submitted by RComm should be made public as it also has shared business details with Trai.

However, on cross checking with officials Trai chairman J S Sarma found that Vodafone has not disclosed all the details to the authority.

"You (Vodafone Essar) have not shared complete model. It is summary of calculation," Sarma said.

Telecom companies said that they have proposed IUC based on their business model which include cost of equipment purchased and deployed by them in the network.

The companies fear that making available their data, used for computing IUC, will reveal confidential information like price negotiated with vendors for purchasing equipment.

Trai earlier denied the request to keep the details secret but later said that there will be two parts of the business model document.

"The part of document which has to be kept confidential will be kept confidential and part of model that can be made public will loaded on our website," Sarma said.

Trai has asked has asked telecom service providers to submit details by May 27 and last date for sending counter comments on the business models is May 28.

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