TRAI moves on IUC and call-handling charge hike likely to ease Airtel, Vodafone Idea troubles

NEW DELHI: The Telecom Regulatory Authority of India (TRAI) this week made two major announcements that analysts say will have a material positive impact on financial health of telcos, especially Vodafone Idea (VIL) and Bharti Airtel.

First, TRAI’s decision to extend the 6 paise per minute call-handling charge or Interconnect Usage Charge (IUC) for another year will boost the operating profits of Airtel and VIL by 1 per cent and 10 per cent respectively in the next financial year. Six paise a minute may not seem much, but every penny counts for the two telcos.