Telecom operators have reportedly stepped-up demands for a steep hike in international incoming call termination charges, arguing that the current framework is misaligned with global benchmarks and is increasingly being exploited for fraud and spam. The industry has sought a revision of the international termination charge (ITC) to Rs 4-5 per minute from the existing Rs 0.65, citing concerns over consumer protection, revenue leakage and an uneven cost structure.
The ITC is the fee paid by overseas carriers to Indian telecom operators for terminating international calls on domestic networks. While it is intended to ensure reciprocity in cross-border telecom traffic, operators say the prevailing rate has become unsustainable. Telcos earn Rs 0.65 per minute for incoming calls, even as they pay foreign carriers an average of Rs 3-3.50 per minute for outgoing international calls.
In FY25, outgoing international call volumes stood at 0.72 billion minutes, according to data cited by the Telecom Regulatory Authority of India in a consultation paper issued in November 2025. During the same period, incoming call volumes into India totalled 11.17 billion minutes, around 15.5 times higher than outgoing traffic. Despite this gap, the current rate structure meant Indian telcos paid about Rs 2.52 billion to overseas operators for outgoing calls, while earning roughly Rs 7.23 billion from incoming calls, only about three times the outgo.
Industry executives say the low termination charge has inadvertently encouraged overseas entities to route large volumes of fraudulent traffic into India. With termination costs so low, it has become commercially viable for scammers to flood Indian networks with phishing calls, robocalls and other forms of telecom fraud.
Operators have also pointed to international precedents to bolster their case. Several countries, including the UK, China, Nigeria, Turkey and Sudan, have increased international termination charges in recent years. India, however, has kept its rates unchanged, creating a pricing anomaly that allows international aggregators to route calls into the country at artificially low rates and earn disproportionately high margins.
Beyond security risks, the imbalance has clear financial implications for telecom companies. Outgoing international call charges are dollar-denominated, exposing operators to currency risk. As the rupee weakens, costs rise even if outbound call volumes remain flat. The industry has also highlighted the impact on government revenues, noting that international termination charges form part of adjusted gross revenue on which licence fees are levied. A higher ITC, operators argue, would therefore also lead to higher collections for the exchequer.
