Scrapping of IUC levy benefit for VIL, neutral for Airtel, some impact for Jio: Credit Suisse

The elimination of inter-operator IUC charges may result in certain EBITDA gains for Vodafone Idea and some impact for Jio, while it will be neutral for Airtel, according to a report.

The zero IUC (Interconnect Usage Charges) regime was previously slated to come into effect from January 2020, but then the telecom regulator deferred its implementation till January 1, 2021.

IUC is a charge that is paid by a telco to another operator when its customers make voice calls to subscribers of the rival network, and these charges stood at 6 paise per minute.

On Thursday, Reliance Jio announced that calls by its users to other networks in India will become free from Friday, as the IUC regime ends.