Jio's interconnect usage charge action could lead to re-rating for sector

Jio's move is seen as a step to recover costs; ARPUs may have bottomed out

The stocks of Reliance Industries and incumbent operators Bharti Airtel and Vodafone Idea gained between 3 per cent and 6 per cent each, on expectations that Reliance Jio’s decision to charge customers for calls made to other mobile networks is an indication that the worst on the pricing front is now behind for the sector. 

Jio announced on Wednesday that customers would pay 6 paise per minute for calls to other operators as long as the interconnect usage charge (IUC) is in place. While the Telecom Regulatory Authority of India (Trai) is holding consultations on IUC, the charge was slated