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

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.

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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.”