Mobile termination rate details- Avoid overcharged on Calls

Have you ever wondered, why the need to call certain numbers increases and especially why international calls are so expensive? The simple answer lies in a concept called the (MTR) Mobile Termination Rate which we will understand better further

Mobile Termination Rate

What is a Mobile Termination Rate?

If you call your friend on a different mobile network and when your call gets connected to your friend, your network operator does not directly connect it but instead of it, your call travel before being connected. It gets connected when your call reaches your friend’s Network Operator MNO. Here is the first time the name of MTRs comes and this is the charge taken in between to send your talk from your MNO to your friend’s MNO called MTRs which helps to take your talk to your friend.

Know about: On-Net Calls vs Off-Net Calls

We do not have to pay MTR charges for calling on the same mobile network which we also called (On-Net) calls.

Whereas we have to pay MTR charges for calling on different mobile networks, which are also called (Off-Net) calls.

Why Mobile Termination Rate is important?

MTR is very important because it directly affects call pricing, especially for (off-net) calls when MTR increases then call pricing also increases and when MTR decreases then call pricing also decreases, it affects international calls because when a call passes through multiple networks then they charge MTR charges due to which the international call price becomes higher.

How MTRs are Involved During Calls?

When placing Call: You dialed a number on a mobile

Automatic Call Distribution (ACD): First your Network Operator identify the receiver network to connect and start the Call Connecting process

Interconnection of Call: If Call is (Off-Net) Calls then your Network Operator (MNO) connect you with receiver Network Operator (MNO) through referred interconnection Points.

MTR Charge: Your MNO pays some MTR Charges to receiver MNO which is already Fixed

Call Connected: After-all Call connects you start talking with your Siblings / Friends

Who Pays MTRs

When you purchase a net pack for Calling, you have already paid the MTR charges to your network operator (MNO), and while making (off net) calls, it is your MNO’s responsibility to pay the MTR charges to the call receiver MNO especially for international calls. After the call is disconnected, the (off-net) call charges may be reflected in subsequent call charges and also keep in mind that only the calling party pays the MTR fee and the call receiving party does not have to pay even a single penny.

What Costs do MTRs Cover

(MTRs) Mobile termination rates are generally kept as a way to collect the cost of calls made on MNO’s network and this money is used for the maintenance of basic structure like Network and Cell Towers and some part of it is kept as profit.

MTRs and Call Pricing- How they affect Consumers

High MTR charges discourage us from making off-net calls and due to this, people are moving towards OTT (Over-the-top) services like WhatsApp instead of the traditional calling method.


The Role of Regulations (TRAs and MTR limits)

To make the traditional calling method affordable, Regulatory Bodies like (TRA) Telecom Regulatory Authority keep setting the limit of MTR Charge from time to time, and because of this limit, TRA confirms that MNOs do not increase Call Prices by charging high termination fees

Promoting Competition in Telecoms (Lowering MTRs)

Lower MTR charges are beneficial for both Consumers and Businesses, due to this there is competition among MNOs that our call rates are cheaper than yours and by doing so they attract more customers to their network due to which Consumers get a good experience at a low rate

Global Trends in MTRs (Decreasing rates)

Looking at the increasing trend towards OTT Apps, we can see a decline in MTR charges day by day, due to which the cost of making off-net calls is decreasing.

Do MTRs apply to SMS and MMS?

Yes, MTR charges are applicable for both MMS and SMS however his charges are much less as compared to voice calls, you can get many affordable services for messaging from various MNOs.

The Futures of MTRs in the 5G Era (Potential Changes)

WhatsApp, Skype and many other OTT Communication Platforms have become very popular by surpassing the Traditional Telecom Calling method and that’s why OTT apps have completely bypassed MTR charges, they allow consumers to make international calls for free or at a very cheap price, due to which in today’s time MNOs have been forced to reduce the charges a lot.

MTR Negotiation Strategies (For Businesses)

Bilateral vs Multilateral Agreements (MTR Contracts)


FAQs:

Who set limits on MTR?

TRAs (Telecom Regulatory Authority) sets a limit for MTR

Can I negotiate lower MTRs with my mobile operator?

No, you can’t negotiate MTRs with your mobile operator

What are the benefits of lower MTRs?

Due to this, you have to pay low (off-net) call costs.

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