Trai lowers network charges by 29%

Telecom regulator Trai on Friday announced a reduction of up to 29% on port charges that private operators pay to connect to their networks to those of state-owned BSNL and MTNL.

The move is expected to pave the way for marginal reduction in tariff cuts, especially roaming rates. It is also set to reduce the operational costs of private operators.

Trai said it expects service providers to pass the benefit of port charges reductions to consumers. Incidentally, this follows a recent move by the regulator to cut roaming charges by up to 56%.

Private operators said that the reduction in port charges will translate to a saving of Rs 350-400 crore annually for the industry.

“Each operator will save between Rs 25-40 crore, the benefits for consumers will therefore be very marginal,” said an executive with a service provider.