Vodafone disappointed with TRAI’s IUC announcement

Vodafone is disappointed with TRAI’s recent announcement of drop in IUC (Interconnect Usage Charges) from Rs 0.14 to Rs. 0.06 paisa per minute.

Speaking about TRAI’s announcement of drop in IUC charges, Vodafone spokesperson said, “We are disappointed with this decision and are now considering our options in response to it. The Indian telecoms industry is already experiencing the greatest period of financial stress in in its history. This is yet another retrograde regulatory measure that, unless mitigated, will have serious consequences for investment in rural coverage, undermining the government’s vision of Digital India.”

The Telecom Regulatory Authority of India (TRAI) has reduced Interconnect Usage Charge (IUC) by 57 per cent i.e. from Rs. 0.14 to Rs. 0.06 paisa per minute.

As per TRAI “Telecommunication Interconnection Usage Charges (Thirteenth Amendment) Regulations” which prescribes Domestic Termination Charges, the regulator has reduced mobile to mobile termination charge from 14 paisa per minute to 6 paisa per minute with effect from 1st October, 2017.

For other types of calls such as wireline to mobile, wireline to wireline and wireline to mobile the termination charge would continue to remain zero.

The TRAI has also recommended that from 1st January, 2020 onwards the termination charge for all types of domestic calls shall be zero.

The prevailing IUC Regulation was notified on 23rd February, 2015 and came into effect from 1st March, 2015. TRAI issued a Consultation Paper for Review of Interconnection Usage charges on 05.08.2016 to seek the views of stakeholders on various aspects of IUC.


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