Incumbent telcos wants IUC to be double

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Bharti Airtel and Idea Cellular have asked to double the interconnection usage charge (IUC) from the present level of 14 paise a minute.

IUC is paid to carriers on whose networks calls are received.

Incumbent telcos wants IUC to be double

Meanwhile, Vodafone wants the cost should be more than the current level i.e 34 paise and as always Mukesh Ambani Reliance Jio is asking it to be eliminated.

The company has said a cost of carrying incoming calls on its network is 30 paise without taking into account the license fee and 34 paise after including it.

According to an industry source, who did not wish to be named, Idea Cellular has said that cost of carrying incoming call on its network is around 30 paise and the company is unable to recover its basic cost at present IUC rates.

Telecom Regulatory Authority of India had called this meeting with telecom service provider and it was asked to make presentations to the regulator on IUC.

To recall, in recent a meeting with inter- ministerial group (IMG) incumbent (Bharti Airtel, Idea, Vodafone) has said that the current (IUC) is below cost and this need to be corrected.

The telcos also said that Jio's free offers had impacted the sector adversely. Meanwhile, India's largest telecom players Bharti Airtel accused the new entrant of engaging in predatory prices.

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