Telecom operators to seek legal help against TRAI's IUC slashing

Telecom operators to seek legal help against TRAI's IUC slashing

Telecom operators to seek legal help against TRAI's IUC slashing

"At that point, IUC was reduced from 30 to 20 (paise) and these guys went to court.so my greatest fear is once again, you are looking at litigation and that is not good for this industry", he said. TRAI said the call termination charge will be applicable from next month. Off late, this charge has been one of the biggest factors behind the earnings of telecom operators and since the launch of Reliance Jio, this was being highly debated because Jio provides all calls for free.

"On the basis of comments received from stakeholders, in writing or during the open house discussion or during the workshop, the Authority has prescribed revised domestic mobile termination charges through these regulations", Trai said in the statement. The IUC will be 6 paise per minute from October 1.

Late Tuesday, the Telecom Regulatory Authority of India lowered the interconnect usage charge, paid by the mobile operator originating a call to the network where it is received, to 6 paise a minute effective October 1 and made a decision to scrap the charge from January 1, 2020. The telecom regulator is planning to do away with interconnection charges entirely by January 1, 2020.

The IUC mainly consists of termination charges, originating charges and carriage/transit charges.Interconnection allows subscribers, services and networks of one service provider to be accessed by subscribers, services and networks of the other service providers.

Telecom operators to seek legal help against TRAI's IUC slashing
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The move comes as a major win for Reliance Jio which wanted IUC to be slashed to zero. It is paid to the telecom operator who receives the call.

Reliance Jio, which is a new entrant in the telecom space, demanded scrapping of the interconnect usage charges (IUC).

TOI was the first to report on the impending cut in IUC charges in its edition dated August 13.

He said that introducing a BAK regime or reducing the IUC at this juncture would "simply mean that there is less revenue available to mobile operators to finance both their existing and future investments".

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