Jio’s IUC move explained: Telcos will enjoy better average revenue thanks to RIL firm

While Reliance Jio is expected to get a better average revenue per user now thanks to its IUC move, other telecom companies like Bharti Airtel, Vodafone Idea will also stand to benefit from the new announcement. “Reliance Jio’s move to recover IUC from the customers points out that the telco aims to increase its ARPU… this will also provide room to the incumbents in the industry to improve their ARPU,” according to a recent CARE Ratings report. Mukesh Ambani’s Reliance Jio recently announced that the telecom firm will recover the telecom costs generating out of IUC and hence is no longer offering a free voice call service.

Even then, while other telecom operators are lobbying for IUC, Reliance Jio is of the opinion that IUC should be withdrawn. However, Reliance Jio’s decision is indicative that industry is expecting the IUC regime to continue post 1 January 2020, even when telecom watchdog TRAI had earlier said that it will terminate all domestic call charges beginning 1st January 2020, CARE Ratings said.