Telecom Regulator Discards Bharti Airtel, Vodafone and Idea’s Demand for Fixed IUC Charge: Report

India’s telecom regulator Trai has reportedly dismissed incumbent telcos’ demand that the interconnect usage charge (IUC) be fixed as the minimum price of a voice call at 14 paise per minute.

In an interaction with ET, Trai chairman RS Sharma termed incumbents’ demand as ‘too much noise’. “I don’t think that’s really a correct thing to do for a regulator. The price is under forbearance; both the top and bottom should be under forbearance….it cannot be that for customers you can raise as much as you want, but you can’t take it below a certain threshold,” Sharma was quoted as saying.

TRAI

Bharti Airtel, Vodafone India, and Idea Cellular asked the Trai regulator that the fixed price should be taken as the floor for retail voice tariffs. These telcos further demanded that Mukesh Ambani-led Reliance Jio Infocomm’s free voice call offer should be banned.

The 4G entrant, since the launch till March 31, was offering free voice and data service, which helped it garner over 100 million users. It has now started charging for data but is giving free unlimited voice service for life for its customers.

Analysts say that Jio’s move to offer free voice services has adversely impacted rival telecom operators that get 80% of revenues from voice.

The top official also backed minimalistic intervention and regulations for the telecom sector in the longer run. He said that unnecessary interventions don’t help.

According to him, the overall health of the sector has been the primary concern of the regulator.

“The telecom industry is very mature, vibrant, competitive, which is a good thing. I trust the wisdom of the players in this space, they’re mature enough to realize what is in their long-term interest,” Sharma was quoted as saying.

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31 Comments on "Telecom Regulator Discards Bharti Airtel, Vodafone and Idea’s Demand for Fixed IUC Charge: Report"

 

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Satyajeet
May 5, 2017 8:12 pm 8:12 PM

article heading is deceptive. IUC charge is already fixed. it should be IUC to be set as min voice call charge

Sanjeet
May 5, 2017 3:12 pm 3:12 PM

Why the airtel withdraw its offer of rs. 244 & 399 with 56 days validity. Its not showing anymore.
Anyone facing this suiation?

chetan
May 5, 2017 11:38 pm 11:38 PM

yes, these offers are dynamic and varies user to user… Thats the reason Jio has contested this with TRAI. Their submission is Airtel is fooling customer by providing SPOT on offers in order to prevent him to move over JIO and these so called lucarative offers are not offered to all and are withdrawn after 1st recharge

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