Trai Set to Cut Interconnect Rate to Below 10 Paise per Minute: Report

The Telecom Regulatory Authority of India (TRAI) is set to introduce the new interconnect usage charges (IUC) rate, which will be under 10 paise per minute, as compared to the currently 14 paise per minute rate, according to a Times of India report. The move will lead to more cuts in voice calls across telecom operators in India.

Reliance-Jio

Notably, incumbent telcos like Bharti Airtel, Vodafone India and Idea Cellular have been demanding for a higher IUC which would be double the existing IUC rate whereas new entrant Reliance Jio wants the IUC to be scrapped altogether. The existing IUC rate is 14 paise per minute whereas the incumbent telcos are demanding a higher IUC of 30-35 paise per minute.

Vodafone India during its IMG meeting said that IUC is already below cost, and any further cut in these inter-operator charges could hurt rural coverage. Idea Cellular had said that the government policy framework should allow telecom service providers to recover their costs, but said that it is completely in agreement that data prices need to come down, according to media reports.

Interconnect charges are the charges paid by one telecom operator to another when a call terminates on the other network. As of now, the charges for wireless calls are 14 paise per minute, however, Trai has agreed to review these charges upon insistence from stakeholders. Trai recently meeting major telecom companies for a workshop where the operators gave presentations on IUC followed by an open-house discussion on the matter. The telecom regulator is currently reviewing IUC and plans to conclude the long-drawn IUC review as soon as possible.

Jio, along with RCom, Aircel and MTNL have demanded a ‘Bill and Keep’ regime instead of the IUC regime as part of which operators only keep a record of incoming calls on their network without raising any demand from other operators. However, Bharti Enterprises chairman Sunil Mittal had urged the regulator to reject BAK method and continue with the IUC regime since under the BAK method call termination charges are not paid.

In a recent letter to Trai chairman R S Sharma, Mittal said, “The current IUC regime… is already well below cost,” and asked the regulator to set the rate at “costs discovered through a fair and transparent mechanism.”

Reliance Jio had earlier told the IMG that incumbent telcos like Airtel, Vodafone and Idea are responsible for the financial stress as they are running businesses on debt and investing heavily in unrelated sectors. It had also alleged that the financial stress is their own creation.

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45 Comments on "Trai Set to Cut Interconnect Rate to Below 10 Paise per Minute: Report"

 

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Sudharsan
August 14, 2017 12:18 pm 12:18 PM

Vodafone, airtel want to make money and invest in other sectors by cheating public money.

Lovegin
August 14, 2017 1:00 am 1:00 AM

welcome welcome welcome. but we want iuc charge to 0

Avi
August 13, 2017 11:50 pm 11:50 PM

Airtel has been my primary number. Eversince i took Jio SIM i have been using airtel SIM only for urgent calls. Today after a long time i talked for 12 minutes by using airtel SIM and the call charge was 14 rupees! I was shocked to see this . It was within the state and on the same network. That is more than 1 rupee per munute!

SC(KPA)
August 14, 2017 3:26 pm 3:26 PM
@Avi : Bro, you at least called for 12 min, last week I checked my balance which was 145 rupees and switched off the phone. In the morning, switched on and saw a flash message. Couldn’t understand that. I checked the balance. Now only 25 rupees left. As customer care options on IVR are always blocked so that we can’t contact them, I mailed to appellate authority. They called back next day and told that I had made international calls for which balance was deducted and as a valid balance deduction, they can’t refund my balance. I told her that… Read more »
Rahul
August 14, 2017 10:21 am 10:21 AM

Airtel is a looter company keep this is mind. I used Airtel for last 6 years as there was no good other option considering quality. Now we do have a very strong choice that is Jio. I recently ported to my primary Airtel number to Jio and using it and very much happy with the service.

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