TRAI will conclude its review of IUC soon: RS Sharma

The IUC rates have been the biggest issue between incumbents telcos and Reliance Jio.

    The Telecom Regulatory Authority of India (TRAI), Chairman RS Sharma today said that they will try to conclude a review of interconnection usage charges (IUC) soon.

    TRAI will conclude its review of IUC soon: RS Sharma

    Interconnection charges are paid by one telecom company to another for using the latter's network to complete calls.

    The IUC rates have been the biggest issue between incumbents telcos and Reliance Jio.

    Incumbents have also demanded to increase the IUC rates to 28- 35 paise per minute from the present level of 14 paise a minute.

    In fact telcos such as Bharti Airtel and Vodafone also said that telecom infrastructure in rural areas largely depends on revenue from incoming calls and lowering or removal of such charges will hamper services.

    However, 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.

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

    Meanwhile, the regulator will meet all telcos on Friday to discuss minimum floor price for voice and data tariff in the country, as it has been demanded by some operators.

    The TRAI is likely to ask telcos to explain their views on a minimum floor price for tariffs, and also the formulation or math for the fixing such a rate.

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