According to Trai, the reduction in termination charge would reduce arbitrage with domestic call tariffs, therefore plugging the illegal VoIP gateway business in India, which will in turn lead to the eradication of the grey market for worldwide incoming traffic.
Telecom regulator TRAI slashed worldwide incoming call termination rate to 30 paise, from 53 paise, to curb the "grey route", an official statement on Friday said.
It added that the grey market, which routes worldwide calls by setting up illegal voice-over internet protocol gateways, needed to be curbed.
Also, the move is expected to address the issue of "serious security threat" that the grey route poses to national security, besides the leakage in revenue due to the country and its carriers.
The reduction would only benefit foreign carriers at the expense of domestic players, he said.More news: Spartak Moscow send racist "chocolate" tweet
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These rates are paid by foreign carriers for terminating worldwide calls in India.
This is the second blow after Trai reduced domestic termination charges from 14 to 6 paisa in October past year.
"Another issue raised in the CP (consultation paper) was about prescribing International Termination Charge and Prescription of revenue share between Indian ILDO (international long distance) and access provider in the International Termination Charge".
Telecom firms levy termination charge on operators from whose networks calls have been made, for transmitting them to the subscriber. "At present, about 20 per cent global incoming calls terminate in India via grey routes".
The reduction in the charge will lower the attractiveness of the grey route for carrying global incoming voice traffic and therefore carrier route for worldwide incoming traffic would witness a legitimate growth, Trai has said while backing its move.