IUC rate cut to provide a level playing field: RCom

Anil Ambani-led Reliance Communications on Wednesday said that the telecom regulator’s move to reduce interconnect usage charge (IUC) to 6 paise , though delayed by three years, will provide a level-playing field.

“We welcome the reduction in IUC to 6 paise by TRAI. We also welcome the B&K model, to be effective from January 2020. The IUC cut has already been delayed by 3 years. With voice calling becoming free, TRAI’s move will provide a level playing field,” Reliance Communications said in a statement.

The interconnectivity user charge was slashed by the telecom regulator to 6 paise a minute from the current 14 paise and the regulator said it would be brought down to zero paise from 2020.

IUC is a fee that a mobile service provider pays another to link a call to the latter’s network. The move is set to benefit new entrant Reliance Jio which has been batting for lowering of the charge and eventual scrapping, while the reduction would come as a huge blow to incumbent operators Bharti Airtel, Vodafone India and Idea Cellular.

Bharti Airtel and Vodafone India have expressed their disappointment over the regulator’s move to slash the interconnect usage rate. Both operators have claimed that the move will benefit new entrant Reliance Jio.

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