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.

Kirti Khurana
January 6, 2017 7:25 pm 7:25 PM

My comment not posted here. Why?

Sudhakar
January 6, 2017 6:24 pm 6:24 PM

Fraudtel’s 3 GB free data is not free. Ypu must recharge with Rs.298 every month for which ypu will get 1.5 GB data + 3 GB data. This clearly states that fraudtel is looting. Better to port out from fraudtel.

Sudhakar
January 6, 2017 6:12 pm 6:12 PM

BSNL kerala circle offers unlimited all India on net calling facility to the unlimited 3G Rs.1099 customers (not existing) from 07th Jan 2017. Offer valid till April 2017.

Sudhakar
January 6, 2017 12:50 pm 12:50 PM
Not for munnu who is still using pigeons after telegraph shutdown : The following SMS blackout days for the year 2017 will apply for the 7 GSM operators in the Tamilnadu circle : 01) Airtel : 01st January (New year), 06th August (Friendship day), 17th October (Deepaavali eve), 18th October (Deepaavali) and 31st December (New year eve) 02) Aircel : 01st January (New year), 14th January (Pongal), 06th August (Friendship day), 18th October (Deepaavali) and 31st December (New year eve) 03) Vodafone : 01st January (New year), 15th January (Pongal), 17th October (Deepaavali eve), 18th October (Deepaavali) and 31st December… Read more »
Arena
January 6, 2017 11:16 am 11:16 AM

It cost only power bill and tower maintenance…India has pan India blanket 2g only bcz of ICU revenue..if pan India 3g,4g possible all will use data for calls, so they never made blanket 3g,4g to happen. Instead cry on OTTs for data calling. Now everything will change with jio offering unlimited calls@149 rest will follow…it’s like loose customer to jio or offer at jio prices..All offering 149 unlimited calls, it’s death for ICU. Then with data game ON….3g,4g coverage improves everywhere.

Munnu
January 6, 2017 10:36 pm 10:36 PM

Abolishing IUC does not guarantee free calls for all and your 149 unlimited calls won’t stay forever. Jio will increase the price once they get sufficient subscribers. They are doing a drama right now.
How about Jio giving good QoS and charging for the service instead? Eh?

Kaushik
January 6, 2017 12:07 pm 12:07 PM
AFAIK AVOID has started cheap tricks for ALL other operators. I am noticing problems dialing Airtel and Idea numbers now from my Docomo and RCom numbers. “This route is busy” messages….I am seeing it most often dialing to Airtel but sometimes also to Idea. Meanwhile, in MPCG RCom to Jio calls work well but in Gujarat I was not able to dial some Jio numbers. It appears POIs are being allocated by Jio to operators based on their market position – AVOID gets maximum POIs while others get less. This explains my problems calling Docomo to Jio in MPCG and… Read more »
Kunal
January 6, 2017 10:04 am 10:04 AM
Airtel & Voda wants to make calling expensive in the name of network cost. They want to squeeze the Indian market & siphoned the funds. They have been making reasonable profits until now. Their claim seems to be ridiculious as Jio & Tata are opposing the same. Even Jio & Tata have their own infrastructure & operational cost. In fact Jio is offering free calls. Airtel & Voda have the maximum subscriber base. They will get the maximum turnover due to Max calls terminating on their network. They are trying to protect their territory by blocking Jio’s free offer. Most… Read more »
R.Madhavan
January 6, 2017 11:17 am 11:17 AM
Brother, Say something meaning fully. The inter connect usage charge has to to be paid by the telecom operator from where the call originates. It is really revenue for the telecom operators. Telecom operators make huge amount of investments for spectrum, towers, infrastructure, etc.. They have to recover the paid amount. They have to earn profits. Where is the source?? Jio is demanding for waiver of interconnect usage charge to offer free services for life time. Jio wants to offer their customers to make free calls and sms to their customers . Jio knows very well that they cannot earn… Read more »
Arena
January 7, 2017 1:04 am 1:04 AM
Its you that need a school. Telecom equipment, towers and all remain same for years, most big are on widest 2G network. None calls unlimited just bcz it is offered…A user pay 149, isn’t this revenue? A basic user pay 149*13=1937 for basic calling. They can start offering OTT services for more revenue… Remember Arpu remain same or even more. It’s like wanting more benefits for same basic price. Killing ICU don’t make calling Arpu even lower than 120-130. It makes them to upgrade network and offer better OTT services. Telecom developments like in last 6 months never happened in… Read more »
Tulsi
January 6, 2017 1:24 pm 1:24 PM

For internet service providers, they also have revenue, but they aren’t asking for IUC for internet. They invest more than the calling service providers. So wake up from bad dream & have tea. Get well soon.

R.Madhavan
January 6, 2017 6:23 pm 6:23 PM

@tulsi: Baby go..go.. go to school.

Tulsi
January 6, 2017 1:20 pm 1:20 PM

Don’t be blind. Don’t go against customers for the sake of your own profit & ego. Airtel already looted so much, controlled telecom market for a long term. There need to be heavy competition. For Avoid group telecom sector of India is far behind. Else we wouldn’t have skipped 3G broad usage by general public. 2017 needs heavy competition in telecom sector. Those who won’t make affordable tarrif with improved quality deserve a kick out.

Sandy
January 6, 2017 12:36 pm 12:36 PM

You missed that point that people will also have to recharge with minimum 150 to get the unlimited calling, now the average arpu of these operators is already around 100-120, so what is the issue here?

R.Madhavan
January 6, 2017 2:33 pm 2:33 PM

@Sandy: What you are coming to say?

Kaushik
January 6, 2017 12:12 pm 12:12 PM
RCom also wants IUC charges lowered or gone entirely, despite the fact that the combined company with Aircel will be top 3 in 12 circles. What is that telling you? The costs are covered if they can reach a specific ARPU (this value is Rs. 94 for Airtel). Exceeding this will give them the profits. They can easily get this by charging for data and VAS. Jio works on a model that you are charged for data and the calls come free. TBH Airtel has been following this model on their DSL broadband for quite a few years. Nowadays, they… Read more »
Nikhil
January 6, 2017 1:43 pm 1:43 PM

combined company with Aircel will be top 3 in 12 circles. Which are those circles?

Mahmood Junaid
January 6, 2017 1:00 pm 1:00 PM

Big blow to aircel and rcom… Supreme court orders to not allow aircel to trade its 2g spectrum with anyone

Kaushik
January 6, 2017 3:36 pm 3:36 PM

It appears now that Aircel subscribers will be ported over to the RCom network. This is the only way out I see.

Kaushik
January 6, 2017 3:34 pm 3:34 PM

Oops. Wonder what RCom will do now, it’s spectrum in Gujarat will expire in September 2017. The court order states to search for an alternative service provider, so it just might be that RCom will take control…..

Nikhil
January 6, 2017 7:07 pm 7:07 PM

Man which are postpaid plans you were saying rcom and idea is offering?

Kaushik
January 7, 2017 11:00 am 11:00 AM

Idea 349. Rcom 149 welcome offer and Jalsa plans 299 399 499. These plans include free roaming outgoing calls.

Nikhil
January 7, 2017 2:37 pm 2:37 PM

Idea 349 what is the plan…. Not available at my place? Thanks for replying

Idea88
January 7, 2017 12:52 pm 12:52 PM

For 4g upgrade? These are available ? I am on Rcom 3g .. I saw on website.

Jio lover
January 7, 2017 12:23 pm 12:23 PM

No these plans doesnt include roaming outgoing

Tulsi
January 6, 2017 9:58 am 9:58 AM

Airtel sucks. They try to loot customers as much possible. Interconnect charge should be 0 or minimal (e.g. 15% of the amount charged from customer). If a network charges Rs1/min, then interconnect charge should be paid 15 paisa. If a network charges monthly Rs 149 & all calls goes to other networks, then other networks combined should get Rs22.35 only.
Fraudtel over charging customers.

Arena
January 6, 2017 11:39 am 11:39 AM

With ICU and dominance, cartel trio made coai a safe zone that protect interests of these. Thats why all existing telecos failed to take on trio, now it’s different. All will be forced to improve Network for data services. ICU becomes zero, 149 calling becomes basic telecom service. Data, App services, IOT- all should move on to stay revalent.

Sudhakar
January 7, 2017 6:49 am 6:49 AM

As if Munnu have not insulted me anywhere in tt.

Munnu
January 6, 2017 10:13 pm 10:13 PM

Sudhakar should be admitted in one of those ICU. He’s using my name when I am not here.

Sudhakar
January 7, 2017 6:49 am 6:49 AM

Cry baby cry.

Sudhakar
January 7, 2017 12:22 am 12:22 AM

As if you didn’t use my name. st f u.

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