Uncertain over IUC regime, Jio to charge for calls to other networks

This will effectively end one of Jio key disruptive strategies – free voice call

Reliance Jio on Wednesday said it would charge 6 paise per minute for voice calls made by customer to other networks such as Airtel and Vodafone Idea after indications that call connect charges may not end on December 31 as proposed earlier.

Current customers when they recharge as well those joining the Jio network from Thursday will have to top up with Rs 10 to Rs 100 to pay for interconnect usage charge (IUC). They will, however, get an equivalent amount of free data — 1 GB to 10 GB. “Jio will provide additional data entitlement of equivalent value based on IUC top-up voucher consumption. This will ensure no increase in tariff for customers,” Jio said.

This will effectively end one of Reliance Jio key disruptive strategies — free voice call. But, it will also help the telco save Rs 650 crore in the coming quarter. It had paid Rs 851 crore to Airtel, Vodafone Idea and BSNL last quarter as IUC. Jio also said this new expense for customers would be a temporary one till telecom regulator Telecom Regulatory Authority of India (Trai) decides to abolish the IUC regime.

Sources said Jio was trying to send a message to the regulator — if the IUC regime continues it would not bear the costs. “It is our shareholders’ money that it being paid out. This is purely a regulatory charge that will be offloaded to the customer,” said the source….

Bad news for Jio users as calls to rival networks won’t be free anymore

After Trai consultation paper on review of IUC regime timeline, Reliance Jio has decided to charge users 6 paise a minute for calls to rival networks

Forced by regulatory uncertainty over review of sunset clause for call termination charges, billionaire Mukesh Ambani’s Reliance Jio on Wednesday announced it will charge customers 6 paise per minute for voice calls made to rival phone networks, but will compensate them by giving free data of equal value.

In a statement, Reliance Jio said the 6 paisa charge will remain in place till the time telecom operators are required to pay rivals for mobile phone calls made by their users to other operators’ network. These charges are not applicable on calls made by Jio users to other Jio phones and to landline phones and calls made using WhatsApp, FaceTime and other such platforms. Incoming calls from all networks will continue to be free.

Telecom regulator TRAI in 2017 had slashed the so-called interconnect usage charge (IUC) to 6 paise per minute from 14 paise and had said this regime will end by January 2020. But it has now floated a consultation paper to review whether the regime timeline needs to be extended.

Since voice calls on Jio network are free, the company had to bear the Rs 13,500 crore payment made to rivals such as Bharti Airtel and Vodafone Idea. To recover the losses created by the TRAI move, the company has decided to charge customers 6 paise per minute for every call they make to a rival’s network.