Interconnection Usage Charges (IUC) or termination charges are payable by one telco, whose subscriber makes a call, to another whose subscriber receives the call. The charge is payable by the first for using the second's network.
A bench of Chief Justice G Rohini and Justice Jayant Nath issued notice to the Telecom Regulatory Authority of India (TRAI) and sought its reply by the next date of hearing on March 1.
In its plea, Airtel has sought quashing of the Telecom Interconnect Usage Charges Regulations issued by TRAI on February 23 last year.
The telecom major has also sought directions to TRAI "to fix termination charges by applying the cost based and work done principle on a non-discriminatory basis".
Vodafone in its plea has claimed that the regulations are illegal, bad in fact and in law, arbitrary and in gross violation of the principles of natural justice, beyond the functions of TRAI.