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How a differential IUC regime can settle the dispute among TRAI, Jio, and the incumbents

For years, TRAI has had uniform interconnect usage charges (IUC) despite different call-termination costs on different networks. It is a flawed approach and the root cause for a fresh dispute between Jio and the incumbents, culminating in a battle over ring time and Jio charging outgoing calls to other operators. A differential IUC regime is an optimal solution, suggests ET Prime’s incisive analysis.
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rishitejpal
13 Nov 2019 5 Mins Read 4 comments
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It’s perhaps akin to comparing apples with oranges. The call-termination costs on different networks (2G, 3G, and 4G) are sharply different, and yet the Telecom Regulatory Authority of India (TRAI) has had uniform interconnect usage charges (IUC). This may be at the heart of a fresh dispute between Jio (which has a 4G-only network) and the incumbents (Vodafone Idea
consider while evaluating IUC costs: What does this mean for telcos? What does this mean for TRAI? While this analysis sounds like more work for both telcos and the regulator, the additional effort may be worth it. It will be a robust framework, balancing the interests of all stakeholders. ( Graphic by Sadhana Saxena)
It’s perhaps akin to comparing apples with oranges. The call-termination costs on different networks (2G, 3G, and 4G) are sharply different, and yet the Telecom Regulatory Authority of India (TRAI) has had uniform interconnect usage charges (IUC). This may be at the heart of a fresh dispute between Jio (which has a 4G-only network) and the incumbents (Vodafone Idea consider while evaluating IUC costs: What does this mean for telcos? What does this mean for TRAI? While this analysis sounds like more work for both telcos and the regulator, the additional effort may be worth it. It will be a robust framework, balancing the interests of all stakeholders. ( Graphic by Sadhana Saxena)

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CONTRIBUTORS WHO HAVE COMMENTED ON THIS STORY

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user Rishi Tejpal ET Prime, Lead Analyst - Telecom

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user Prem Subedi Bharti Enterprises, New Delhi, Manager - Group Corporate Communications

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