Reliance Jio Might Offer Cheaper Plans Following TRAIs Ruling

Prayank

The Telecom Regulatory Authority of India (TRAI) issued a notification on Tuesday stating that Interconnection Usage Charges (IUC) will be reduced from 14 paise per minute to 6 paise per minute starting October 2017 and this might benefit users in the long run.

The TRAI notification also suggested that the IUC charges will be further dropped to zero for all domestic calls from January 1, 2020.

The IUC charges for other types of call such as wire-line to mobile, wire-line to wireline and wire-line to mobile will remain zero.

What is IUC?

The IUC has to be paid by telecom service providers (TSP) whose subscriber initiates the call to a telecom operator on whose network the call gets terminated.

For example, if a Jio subscriber calls a Vodafone subscriber then Reliance Jio will pay 14 paise per minute for that call to Vodafone and vice-versa.

How Will Jio Benefit?

Drop in the rates of IUC means that every telecom operator will have to pay less to other telecom operators for outbound calls from their network.

Since Airtel, Vodafone, and Idea enjoy a larger subscriber base — resulting in more incoming calls on their network — might take a hit following the price drops as their revenues will suffer.

But Reliance Jio and Aircel that are a little behind in the race will benefit from the new rates as they’ll now be paying a lot less for outbound calls from their networks to other networks that have more subscribers.

How Will Users Benefit?

Since Reliance Jio will benefit from the drop in IUC, this benefit might, in turn, translate into continued low tariff for Jio subscribers in the long run, including free calling benefit.

If all goes too well, Jio might even drop their tariff rates or start offering more features on the existing plans.

The TRAI held multiple correspondences with telecom operators to ascertain their views on the issue and then finally issued the new ‘Telecommunication Interconnection Usage Charges (Thirteenth Amendment) Regulations which prescribes Domestic Termination Charges’.

“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,” the notification read.

Also See
#airtel #Reliance Jio

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Prayank

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Prayank

Bike enthusiast, traveller, ManUtd follower, army brat, word-smith; Delhi University, Asian College of Journalism, Cardiff University alumnus; a journalist breathing tech these days.