The government is considering a reduction in mobile termination charges by next year, a move that is expected to bring down call rates further.

Cheaper calls?

* Mobile termination charge is paid by a mobile operator to another on whose network the call ends

* The move is expected to bring down call rates further

* India already has the lowest mobile rates across the world

* The local call charges could come down to as low as 10 paise a minute and STD rates to just 25 paise per minute

* DoT would have to refer the matter to Trai for its recommendations

* The move would help new mobile players like Unitech, Datacom and Loop Mobile

Earlier this year, Trai had slashed local termination charges by 33 per cent to 20 paise per minute from 30 paise a minute.

The government has about Rs 16,000 crore in the USO fund, which is used for subsidising rural operations. It has fixed a target of 10 million broadband subscribers in rural areas in the next two years. Raja would also meet telecom equipment manufacturers and internet service providers in the next two days.