Jio Wants Trai to Reduce 6 Paise IUC Charges If Not a Complete Removal

In the open house discussion conducted by Trai, Reliance Jio urged the regulator to either implement zero-IUC or bring down the charges

Highlights
  • Reliance Jio already started charging customers for non-Jio voice calls
  • Airtel and Vodafone Idea continue to oppose the removal of current IUC regime
  • Incumbent telcos want the zero-IUC regime to be delayed by at least three years

Reliance Jio is making headlines yet again as the telco entered into battle once more with incumbent telcos Bharti Airtel and Vodafone Idea regarding Interconnect Usage Charges (IUC). Earlier today, the Telecom Regulatory Authority of India (Trai) conducted an Open House discussion on Consultation Paper on “Review of Interconnection Usage Charges.” During this discussion, Reliance Jio urged that there are no reasons in delaying the zero-IUC regime as the voice calling traffic symmetry between the telcos is now achieved. But Bharti Airtel and Vodafone Idea opposed this argument saying that the current 6 paise IUC charges should stay for at least next three years.

Jio Mulls for Reduction of 6 Paise IUC Charges If Not for Complete Removal

Reliance Jio has been very vocal during the open house discussion conducted by Trai. The Mukesh Ambani-led telecom operator had urged Trai to bring zero-IUC regime at the earliest since the traffic symmetry between the telcos has been achieved. The bill and keep (BAK) regime, under which the zero-IUC charges will come into effect was initially scheduled to become effective from January 1, 2020.

RS Sharma, Trai Chairman, said that the sector regulator would soon come out with a new framework. “We will come up with regulation on IUC as soon as possible,” he said when asked about a timeline, as reported by ET Telecom.

We still have 45 days left for the BAK regime to become effective so Trai may come up with a new regulatory framework before the same. Consultation paper on “Review of Interconnection Usage Charges,” will likely arrive in the next few weeks.

While Trai did not reveal any timeline, telcos had their sayings on the matter. Mahendra Nahata, Director at Reliance Jio Infocomm, who represented the telco at today’s open house discussion urged that “delaying the implementation of zero call connect charges beyond January 2020 will hurt affordability of telecom services.”

If not for zero-IUC charges, Reliance Jio wants the current six paise IUC charges to be reduced by Trai.

As always, Vodafone Idea and Bharti Airtel opposed the idea from Reliance Jio. Chief Regulatory Officer at Bharti Airtel, Ravi Gandhi, who is also part of the discussion said “One operator should not end up subsidising the other, and therefore when we ask for delaying BAK, we’re only saying that we should be compensated for the work we’re doing, and that is the principle that the authority should adopt.”

Reliance Jio Says Traffic Symmetry Between the Telcos Has Been Achieved

At the same open house discussion, Mahendra Nahata said that the required traffic symmetry between the telcos has been achieved now and there’s no point in delaying the implementation of BAK regime. According to Nahata, the ratio of outgoing and incoming voice calling on Jio network is now on par with each other. In April 2017, when the six paise IUC became effective, Reliance Jio had 90% outgoing and 10% incoming. This was the reason why Trai had set the deadline of December 31, 2019, for the implementation of BAK regime.

“The reason of traffic asymmetry is no longer there, for delaying the zero termination charge from January 1, 2020,” Nahata added.

Furthermore, Jio’s Nahata alleged that incumbent telcos are diverting their traffic to 2G or 3G networks for showing higher costs for voice. Airtel’s representative termed these allegations as misplaced, while Vodafone Idea said it’s not holding back customers from porting out to other networks as Mobile Number Portability (MNP) is always available as they believe that alleging a company of holding 2G subscribers is entirely wrong.

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Jio lover.. i can afford 6 paisa per minute..RajuBharatiya MonkWalkerNikhil Recent comment authors
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Walker
Walker

OT: Is Asus Zenphone Max Pro M2 Support CA ?, as per Asus offical site its showing CA

City
Gujarat
Operator
Airtel
Jio lover.. i can afford 6 paisa per minute..
Jio lover.. i can afford 6 paisa per minute..

No i suppose

Satyam Shivam Sundaram
Satyam Shivam Sundaram

Though not the best solution, but as a middle ground between the two warring parties – Jio and Avoid, I feel an IUC of 3p/minute (which is between 0 paisa and 6 paisa), should be implemented for 2 yrs atleast. Hopefully, this should satisfy (but not fully) both the parties.

And hopefully, after this, Jio will not resort to unethical and immoral IUC packs and charges., which betrayed and broke consumers trust. Else, it will prove beyond doubt that Jio did so earlier with the intention to fraud and loot its customers.

Esmail (Delhi)
Esmail (Delhi)

+ Billion. Totally agree. All telcos should accept 3p/min IUC for couple of years, else there will be no solution at all, and they’ll keep fighting for ever. Even Jio itself is talking about reduced IUC, if not zero IUC.

Bharatiya Monk
Bharatiya Monk

LoL, SSS, seems both Jio lovers and Avoid lovers are equally gives you dislikes, for your balanced and positive solution for the complicated and contentious issue. At least, in and for dislikes they got together. There is nothing better than negativity that binds people more than positiviy… sad truth and reality of the current world

Arena
Arena

Why u need so many calls? Users moving out as data centric.

Bharatiya Monk
Bharatiya Monk

Arena, few urban millions don’t represent billion Indians living in mostly rural and semi-urban areas. Even in urban areas, people have not shunned voice calls to be mostly on data.

Remove your myopic perspective and vested mindset, and you and your Avoid cartel masters will see, understand and treat India and Indians better.

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