IUC cut not meant to hurt telcos: TRAI

India Infoline News Service | Mumbai | September 29, 2017 17:56 IST

The Telecom Regulatory Authority of India (TRAI) has rejected the argument that reduction in mobile call connection rates has any linkage with the financial stress faced by the telecom sector, reported a national news agency.

Telecom
The Telecom Regulatory Authority of India (TRAI) has rejected the argument that reduction in mobile call connection rates has any linkage with the financial stress faced by the telecom sector, reported a national news agency.
 
The charges are not meant for making profit, said TRAI.

"To my understanding there is no connection between stress in the telecom sector and IUC rates because rates cannot be profit vertical for any company. You get compensated for whatever work you do. Whether you are handling one call or 10 calls, you are not being paid less or being paid more. You don't make a loss or profit," it reported quoting RS Sharma, Chairman, TRAI. He was responding to a query regarding the IUC charges at the first ever India Mobile Congress.
 
Telecom services providers currently charge 14 paise a minute for allowing a domestic call from a rival operator to terminate on their network. This charge, called Interconnection Usage Charge or IUC, will be 6 paise per minute from October 1, 2017.

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