The surge in scam calls in India is attributed to low international termination charges (ITC), currently at 65 paise per minute, which is among the lowest globally. Telecom companies are urging the regulatory authority to raise the ITC to deter fraud and boost government revenue. Increased ITC rates could create barriers against phishing attempts that target Indian consumers.

A notable increase in scam calls has been observed in India as fraudsters capitalize on the low cost of international termination charges (ITC). Currently, India’s ITC stands at only 65 paise per minute, among the lowest globally, making it easier for scammers to operate. Comparatively, other countries have significantly higher ITCs, including Dubai at ₹13/min and the United States at ₹19/min, which serve as deterrents against such fraudulent activities.

Telecom giants, including Reliance Jio, Bharti Airtel, and Vodafone Idea, have appealed to the Telecom Regulatory Authority of India (Trai) to elevate the ITC to align more closely with international rates. They argue that increasing the ITC would form a barrier against phishing attempts and discourage perpetrators from utilizing international telecom networks to target Indian consumers. Furthermore, they contend that a rise in ITC would also enhance governmental revenue, especially considering the growing influx of international long-distance (ILD) calls to India.

The Cellular Operators Association of India (COAI) cited in a letter to Trai how current ITCs foster an environment conducive to spamming and phishing. They indicated that the pricing framework creates a lucrative opportunity for fraudsters, thereby exacerbating the issue. Moreover, recent incidents highlight an alarming pattern of scammers impersonating officials from reputable institutions such as the Income Tax Department and the Reserve Bank of India, often leading to financial loss for victims.

Experts note that the determination of ITC levels is influenced by various factors, including foreign exchange rates, the volume of ILD traffic, and negotiations between Indian telecom entities and their foreign counterparts. These complexities suggest the need for an informed approach when considering adjustments to the ITC structure.

In summary, the low international termination charges in India have not only fostered a rise in scam calls but have also drawn the attention of major telecom companies advocating for higher charges. By adjusting the ITC to synchronize with global standards, there is potential to curtail fraud and benefit public revenue amidst an ongoing surge in international call traffic. Stakeholders must consider multiple factors governing the telecommunications landscape to devise effective solutions.

Original Source: m.economictimes.com

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