Broadband India Forum Backs Reliance Jio On Abolishing IUC Charges

Broadband India Forum (BIF) has backed Reliance Jio’s stand on doing away with the interconnect usage charges from January 2020.

” The TRAI had decided that the applicable date for implementation of Zero IUC Rates would be January 1, 2020.  To renege on that decision now, will create a sense of regulatory uncertainty and shall adversely impact India’s image as regards future investment potential in the sector,”BIF said in a statement.

Reliance Jio is the only operator which is asking for zero IUC changes while incumbent players are asking for an increase in the rates from 6 paise now to 14 paise. IUC charges are paid by the operator on whose network the call originates to the operator on whose network the call terminates.

BIF said that  continuing to incentivize/subsidize operators in the form of IUC for managing the significantly less efficient 2G voice networks will not only be detrimental to consumers, but also adversely impact the growth of all digital players, startups, OTTs, Application developers, etc. who need high speed 4G broadband connectivity to survive and grow – an aspect important for the economy and the nation.

TV Ramachandran, President, Broadband India Forum, shared, “One may note that post lowering of the IUC to 6 paise/minute by TRAI in 2017 there has been a great improvement in affordability with subscriber’s average outgo per minute dropping from 23 paise per minute in Sep’2017 to 13 paise per minute in Mar’2019. This has clearly resulted from the half way movement to Zero IUC.”―The Hindu Business Line