Carriers, through industry body Cellular Operators Association of India (COAI), have argued that the rupee’s depreciation over the past year has eroded their realisations, as ITC is settled in US dollars with global operators. An upward revision would help telecom players offset the adverse impact of the disparity in termination charges.
While a foreign telecom service provider would pay an Indian carrier only between 35 paise and 65 paise per minute, the charge is ₹3-3.5 per minute when calls originating from Indian networks terminate on foreign operators’ networks.
Carriers have further argued that the ITC regime is neither dependent on nor linked to the overall termination charge framework currently under review by Trai. The regulator began a consultation on the overall framework in November 2025. Therefore, immediate intervention by the regulator to revise the ITC would ensure a more equitable regime.
Trai is yet to issue recommendations on the overall termination charge framework. It last reviewed ITC in 2020, raising the rate from a fixed 30 paise per minute to the current range of 35-65 paise per minute.
The demand has been reiterated by carriers at recent meetings with the regulator, said people aware of the developments. They have also sent written representations to Trai over the past several months.
In a letter sent in June 2026, COAI said an upward revision would bring Indian rates closer to prevailing international benchmarks and ensure fair compensation for the use of Indian telecom networks.
Countries such as China, the UK, South Korea and Vietnam have raised ITC rates (in dollar terms) by at least two to three times over the past five years, a senior industry executive said, asking not to be named.
“The authority may also prescribe a time-bound glide path for further upward revision to align India’s ITC with global benchmarks over the next two to three years,” COAI said in the letter.
Indian private telecom players and public-sector carrier BSNL are aligned on the issue. All have sought an upward revision of the ceiling to at least ₹4 per minute, with some seeking a rate of up to ₹5 per minute or alignment with global levels, according to their submissions to Trai as part of the consultation on the broader termination charge framework.
Telcos have also maintained that an upward revision of ITC would not impose any additional financial burden on Indian consumers, as incoming international calls are free for the receiving subscriber. The termination charge is payable exclusively by the originating foreign carrier or its intermediary.
Carriers have previously argued that the prevailing low ITC regime has had significant adverse consequences, as it has enabled large volumes of fraudulent international calls targeting Indian consumers. This, they have argued, increases the risk of financial scams and erodes consumer trust in telecom services. It also leads to substantial revenue losses for Indian carriers, reducing government revenues and putting the country at a competitive and economic disadvantage compared with other jurisdictions.
