Jio takes on Airtel & Vodafone again

Bruno Cirelli
Agosto 16, 2017

IUC is a charge paid by the telecom operator from whose network a call originates to the telecom player where the call ends. The Telecom Regulatory Authority of India is holding discussions with the industry and is mulling reducing IUC to 10-11 paise per minute from the current 14 paise per minute, people privy to the developments told CNBC-TV18.

The TRAI will also consult the interministerial group (IMG) which was set up to resolve financial woes of the telecom sector, sources told CNBC-TV18. The charges at the present moment is 14 paisa per minute and as per the Bank of America-Merrill Lynch report "its net interconnect payments could come down materially, helping it to achieve EBITDA (earnings before interest, tax, depreciation & amortisation) break-even earlier than expected".

By contrast, market leader Bharti Airtel's month-on-month gain was a modest 3 bps in active subscriber market share in June, while Vodafone India and Idea lost 9 bps and 2 bps on this metric respectively.

This offer is available on select customers, it is not a common price plan.

Airtel offers 84GB data along with the unlimited calls to all networks for 84 days.

Mukesh Ambani-led Jio has been pressing for the 14 paise/minute IUC charge to be dropped, as it pays a sizeable sum as interconnect charges because the bulk of its call traffic terminates in the networks of incumbent telcos. In fact, if IUC is increased, Jio would end up paying more to the top three telcos.

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