Jio vs. Rivals Theme Continues at TRAI’s IUC Open House

Advertisement
By Press Trust of India | Updated: 20 July 2017 15:56 IST
Highlights
  • Airtel, Vodafone said low incoming call revenue will hamper rural service
  • Jio promises to provide 99% coverage by the end of this year
  • Telcos shared their concerns at the ongoing open house discussion on IUC

The warring parties over interconnect usage charges are digging in their heels.

Established operators such as Bharti Airtel and Vodafone Thursday contended that telecom infrastructure in rural areas largely depends on revenue from incoming calls, and lowering or removal of such charges will hamper services.

Advertisement

The new entrant, Reliance Jio, brushed aside the logic, claiming that it will provide 99 percent coverage by the end of this year even if mobile interconnection charges are dropped.

"Poor people in the country are subsidising inefficient network of telecom operators. There is very less cost of carrying calls on 4G network, but still incumbent operators are making people in rural areas use 2G network. We will install network in the village very next day if any operator wants to leave a village," a Jio representative said on IUC at TRAI's open house discussion on Thursday.

TRAI in an affidavit filed before the Supreme Court in 2011 had said telecom operators should be given time till 2014 to move to the bill and keep regime. Under this, operators only keep record of incoming calls on their network, but do not raise any demand from other operators.

The official held that continuation of IUC beyond 2014 has resulted in incumbent operators benefiting to the tune of Rs. 1 lakh crores.

Advertisement

Telecom operators levy interconnect usage charge (IUC) on incoming calls from the network of the other operator. These charges are passed on to subscribers by service providers.

"IUC in rural area is not for subsidy, but to recover charges because terminating operators (on which a call is made) cannot charge for incoming calls," a Bharti Airtel representative said.

Advertisement

He made the point that IUC is not meant for availing gains, but a way of recovering cost.

"Going by the growth rate, if the subscriber base of a new operator goes up to 400 million, it will push the cost burden of Rs. 2 lakh crores on the industry," the Airtel representative said. "Airtel's 4G rollout is at par with that of Jio and the new entrant should not give the impression that they are the only saviour of data services in the country."

Advertisement

The reasoning the official gave was that when a customer makes a call to a different network, he authorises his service provider to pay IUC to the operator on whose network the call has been made.

Vodafone said the Telecom Regulatory Authority of India (TRAI) in its report has mentioned that there are a number of incoming calls made in rural areas compared to outgoing calls and IUC provides revenue to support telecom infrastructure at such locations.

"We have our 54 percent of sites (mobile towers) in rural areas. One can say it is very easy to put a site next day, but we know how much hard work we have done," the Vodafone official added.

Another representative from Vodafone felt that maintenance of rural network should not be jeopardised by removal of IUC.

Idea Cellular, which is batting for a higher IUC, on its part, argued that the industry is under financial stress and needs reason to support future investment.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Oppo Find X10 Series With Triple 200-Megapixel Cameras Arrive in India
  2. Oppo Reno 16 Price in India Rises, New 128GB Model Launched
  3. 5 Reasons the Samsung Galaxy A Series Should Be Your Festive Upgrade This Diwali
  4. Oppo Pad Mini Launched in India With These Features
  5. Redmi Book 2027 Series Launch Date Announced
  6. CoinDCX Denies Fresh Breach as ZachXBT Questions Wallet Activity
  7. Samsung W27 Foldable to Reportedly Launch on This Date in China
  1. Meta Ordered to Pay $25 Billion Penalty in Data Privacy Case
  2. Cyberpunk 2077 Gets New Quests, Gameplay Features and Mod Support With Edgerunners 2 Update
  3. CoinDCX Dismisses Second Breach Claims as Blockchain Investigators Examine Wallet Transfers
  4. HMD 2660 Flip Senior Edition Launched With AI Companion Mary, Removable Battery, 4G Support: Price, Features
  5. Lenovo Yoga Pro 9n, Yoga 9n 2-in-1 With Nvidia RTX Spark Launched in India: Price, Specifications
  6. Oppo Pad Mini Launched in India With 2.5K OLED Screen, 8,000mAh Battery: Price, Specifications
  7. Oppo Find X10 Pro Max Launched in India With Triple 200-Megapixel Cameras, Dimensity 9600 Pro SoC, Oppo Find X10 Tags Along: Price
  8. Google Cloud Adds GPT-6 Astra, GPT-6.1 Sol, GPT-6 Luna Models to Model Garden
  9. China Demands Return of 61,800 BTC Seized in UK Fraud Investigation
  10. Acer TravelLite TL44-53M-G2 Launched in India With 14-Inch Display, Intel Core Ultra Series 3 Chip
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.