Jio’s move to charge for off-network calls may help telcos raise tariff

After announcing that subscribers will have to get additional top-up recharges to make off-net calls to compensate for interconnect usage charges (IUC) paid by the operator, Reliance Jio has launched plans that come bundled with IUC usage.

Analysts largely see this as a positive for the sector, saying it will allow Bharti Airtel and Vodafone Idea to increase their rates as well.

“We think all-in-one plans ease some of these concerns (on the older majors’ operational issues), by bundling 1,000 IUC minutes. Also, the new plans provide relief to the price hike (brought by IUC fees) in one of Jio’s most popular plan, the Rs 399 (1.5GB/day, validity 84 days) one,” wrote Varun Ahuja, research analyst at Credit Suisse.