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TRAI gets 3 months to formulate new IUC rules news
16 July 2011

India's Supreme Court gave a three-month extension to Telecom Regulatory Authority of India (TRAI) to formulate a new 'interconnect usage charge' (IUC) regime.

On Friday, a three-member bench headed by Chief Justice S H Kapadia allowed the urgent plea of the Telecom Regulatory Authority of India (TRAI) seeking more time for IUC.

IUC are charges (levied for originating, terminating or carrying a call) paid by a telecom operator to another service provider for using the latter's network.

The Apex court had on 4 February given TRAI four months for coming up with recommendation on telecom interconnection charges, which expired on 4 June. On 29 April 2011, TRAI rolled out a consultation paper aimed at reviewing IUC charges, a move that could further reduce mobile rates in the world's cheapest mobile market.

TRAI is seeking comments from the industry before it would make it into a law, and has given a month's time to the sector to submit its views and opinions.

TRAI is seeking whether the new IUC regime should be for three years, whether the termination fees will be a part of the capital expenditure of the companies and depreciation should be calculated at 10 percent on straight line method among others.

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TRAI gets 3 months to formulate new IUC rules