IUC cut impact: Jio stands to gain; pain ahead for Airtel, Vodafone, Idea

In two years, interconnect user charges, or payment for calls made to other telecom networks, will be reduced to zero

In a move that might hurt incumbent telecom service providers like Bharti Airtel, Vodafone and Idea Cellular, the Telecom Regulatory Authority of India (Trai) on Tuesday reduced interconnect user charges (IUC) by 57 per cent from 14 paise to 6 paise per minute, with effect from October 1.

The regulator plans to bring IUC down to zero in two years, removing the need for any extra payment for placing calls to other telecom networks. For other types of calls (such as wireline-to-mobile or wireline-to-wireline), the termination charge would continue to remain zero. (Read more)

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