Interconnect usage charges: Reliance Jio, TTSL oppose Airtel, Vodafone pleas

Mukesh Ambani-led Reliance Jio and Tata Tele Services Ltd (TTSL) reportedly opposed in the Delhi High Court the petitions filed by Airtel and Vodafone that challenged TRAI’s interconnect usage charges regulations, according to a PTI report.

India’s leading telecom operators Bharti Airtel and Vodafone India have previously challenged the telecom regulator’s interconnect usage charges rules fixing termination charges for landline to wireless as zero paise and wireless to wireless at 14 paise per minute.

The report said that Reliance Jio and TTSL’s counsel told a bench of Chief Justice G Rohini and Justice Sangita Dhingra Sehgal that they are opposing the petitions filed by Airtel and Vodafone.

Senior advocate P Chidambaram, who was appearing for one of the petitioners, however told the bench that telecom operators having less customers are not at “disadvantage” but operators that have a large customer base are suffering” due to the regulation.

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The report said that Chidambaram also argued that these telcos were incurring loss due to termination charges fixed by the Telecom Regulatory Authority of India (TRAI) regulation.

“Bigger network providers are suffering wider disadvantage…Sharing the revenue does not mean that somebody will collect the revenue and will not share it with me. Sharing the revenue can never mean 100 on the one side and zero on the other,” he was quoted as saying.

He added that if a telco has incurred huge amount in its infrastructure, and If somebody is using that infrastructure and earning revenue, they have to share it with the former.

The arguments would now continue on January 9, 2017, the report said.

Previously, GSM telco industry body COAI had said that actual network-related costs incurred by telecom operators should be used to compute the interconnect charges, thereby batting for an increase in mobile termination charge. Typically, interconnection usage charges or termination charges are payable by one telco, whose subscriber makes a call, to another whose subscriber receives the call. The charge is payable by the first for using the second’s network.

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47 Comments on "Interconnect usage charges: Reliance Jio, TTSL oppose Airtel, Vodafone pleas"

 

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Yadyurappa
January 6, 2017 11:15 pm 11:15 PM

I thought Tata Docomo stopped expanding their network but last week they launched 3G in my town.

Nikhil
January 7, 2017 2:25 pm 2:25 PM

Which town?

Eshwarappa
January 7, 2017 3:41 pm 3:41 PM

Small town called Karkala in Karnataka.

Mandar Sherbet
January 7, 2017 7:54 pm 7:54 PM

Karnataka circle is the most important for Tata Tele as it contributes about 16% of the company’s revenues. Maharashtra contributes another 12-13%. Hence Tata Tele is strengthening it’s 3G network in these 2 circles with keen interest. Other 3G circles of Tata Tele (Gujarat, MP, Haryana, Punjab, Kerala & UP-W) too could see 3G network improvement in coming months. But all these circles put together contribute just about 25% of the company’s revenues.

Kaushik
January 12, 2017 12:40 am 12:40 AM

I wish TATA would improve its 2G or at least offer icr based services as there are many locations in mainly sub rural areas where there is simply no signal. In urban districts the 3G coverage is both seamless and excellent. Voice quality is on par with Vodafone and the best in the industry.

lalit
January 9, 2017 6:47 pm 6:47 PM

What about Mumbai?, Tata Tele has no 3G coverage ?. Most of the operators are on 3G in metros.

Mandar Sherbet
January 10, 2017 9:55 am 9:55 AM

Tata Tele has acquired Band 3 (1800 MHz) spectrum for Mumbai & Maharashtra circles in the recent auctions, that too at exorbitant price (especially for Mumbai). Hence I think that Tata Tele won’t be using such an expensive spectrum just for 2G services. We can expect Tata Tele to launch 4G using this spectrum, sometime in 2017.

lalit
January 11, 2017 3:46 pm 3:46 PM

Some people on TT think TTSL bought this expensive spectrum to stay in the Mumbai , Maharashtra & Andhra Pardesh to stay in the game, and will get a good sale price of Docomo.

TTSL is think of leaving the telecom space, hopefully Tata & Docomo resolve the case

Nikhil
January 7, 2017 5:47 pm 5:47 PM

Thanks……..

Mandar Sherbet
January 6, 2017 8:17 pm 8:17 PM
I think IUC should stay as every operator deserves to earn some revenue for carrying & terminating a call on it’s network. A few quarters ago TRAI reduced the IUC from 20 paise per min to 14 paise per min, primarily based on increased call volumes which allowed the operators to recover the primary operating costs with lower IUC. With further increase in Call volumes, especially after more & more Unlimited Calling Plans, I think there is scope for further reduction in IUC to something like 10 paise per min. Airtel, Vodafone & Idea being the largest operators, stand to… Read more »
Arena
January 7, 2017 12:42 am 12:42 AM
Later they will recover from data, data to be as main stream. ICU is one sided, Top always be on Top. Airtel always tops in terminating side.these many years of telecom investment, calls should be made flat rate. User use or don’t use 149 flat rate brings telecos more money. I don’t talk unlimited because it’s unlimited, anyone here? Bcz of ICU India has pan India 2G,.With jio on other side all are forced to offer better data services, with good data and WhatsApp telecos call arpu will go even down, if they act relectant in upgrading network and making… Read more »
Kannu
January 6, 2017 7:36 pm 7:36 PM

Airtel is giving good tempting offers. Airtel , as now is not having data load, is distributing data at affordable prices. Jio at the locations I visit , does not provide at any band , more than 3 Mbps.
While airtel is able to provide more than 16 Mbps.

Jio is giving 30 GB / Month as well as 2 to 5 am free data. Which makes it also a good deal. But as the network is not trustworthy, jio , cant be the network which could be the primary number of anyone.

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Nikhil
January 7, 2017 2:27 pm 2:27 PM

Which is your phone? What is your location?

Arif
January 6, 2017 11:02 pm 11:02 PM

But no offers for postpaid.

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