IUC is zero, there are many doubts about the benefit of the customer

Today, as previously announced, the Interconnection Usage Charge (IUC) is rising from the first day of the new year. In the case of call connection between the two companies for providing mobile services in the country, which was introduced a long time ago. According to Reliance-Geo, the cost of calling other companies is also rising.

In other words, calls made from Geo in connection with other companies are becoming completely free. But according to a section of the telecom industry, there is skepticism as to how much the impact of zero IUC will actually fall on the overall tariff rate. Because the total cost of the company had to be counted in that sector very little. As a result, the company will save a lot of it goes up, not that. On top of that, companies now offer unlimited time to talk with data services in virtually all cases. Which is practically free of charge.

The old telecom companies have a large number of subscribers and their infrastructure is large. The IUC has been arguing for a long time to raise at least some of the cost of making it. In addition, although Geo only offers 4G services, Vodafone-Idea (VIL), Airtel and BSNL have had to keep both 2G and 3G running. Because many consumers in the country still cannot afford to buy smartphones. That’s why the old firms were in favor of running the IUC for a few more days.

Although Geo claims that the tariff is not being reduced for the IUC, it is not only against the Centre’s plan to build a digital India but also against consumer interests. However, as TRAI maintained it, Geo started charging different fees for IUC from the customers and the public was dissatisfied. Finally, the deadline for withdrawal of TRI IUC was extended by one year to January 1, 2021.

Geo claimed that when the IUC went up, they also promised to withdraw the ‘pack’ of that toll. As a result, their customers will be able to talk completely free of cost from today. But part of the industry claims that Geo will allow everyone to talk for free, but the call is through data services. For which the customer has to pay the toll.

In fact, companies are now demanding unlimited talk in virtually all data service-dependent tariff rates. On this day, Vodafone-Idea also gave that argument. Claimed that their customers did not have to take any separate toll pack for IUC before. They will still have the opportunity to talk for free as before. Airtel, however, did not respond.

Where the debate

If ‘A’ is called from ‘B’ mobile company number to ‘B’ mobile company number, ‘A’ pays ‘B’ to Interconnection Usage Charge (IUC). 6 paise per minute.

It was introduced as a way to raise the cost of building their infrastructure as the old ones had more customers than the new telecom companies.

• TRAI had a plan to reduce the difference in the number of subscribers.

In the beginning, Vodafone and Airtel had more customers so Geo had to pay more IUC. The picture was later reversed when Geo emerged as the largest company.

• Finally, the decision to withdraw it from 2021.

Even if the IUC rises, there are doubts about the impact of the toll.

• Almost all organizations now have unlimited time to talk with data services in virtually all cases, virtually for free.

Concerned quarters claim that even if the impact of the rise of IUC is not felt in the mobile toll, the complexity of the accounts of the companies will be reduced. Compared to Geo, Vodafone and Airtel will save less money. But it remains to be seen how much of that money is spent on infrastructure.

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