Jio worried about delay in implementation of zero IUC, says will hurt affordability

Reliance Jio is worried that the delay in implementation of IUC or zero call connect charges will hurt affordability of its existing offerings including free, unlimited voice calls.

Jio passing on the IUC charges onto the subcribers sparked a huge war of words between Jio and the incumbent telecom operators. Jio was upset with the Telecom Regulatory Authority of India (TRAI) over its IUC review, terming the regulator's consultation paper as unwarranted and unsustainable. Jio had raised concerns that IUC will harm users, punish efficient telcos and reward defaulters.

Jio now argues that the ratio of incoming and outgoing call is at par with each other and traffic asymmetry can no longer be the reason to delay implementation of zero IUC starting next year, indicating that Reliance Jio will not have any outstanding balance of interconnect usage charges (IUC) against other networks.

Reliance Jio Director Mahendra Nahata said Airtel had expanded 4G network and Vodafone Idea too is talking about expanding their 4G network.

"We are not considering any profit or loss, but opposing it on the basis of principle. Criticising the decision of government or regulatory authorities from a distant location is beyond our understanding. Therefore, please take a decision after due diligence on all the points that we have raised," he said.

Raising question on data shown by other telcos, Jio alleged that the subscriber traffic is being diverted to 2G, 3G network to show cost of voice is high.

The least Jio is expecting is IUC of 6 paise to come down in the event that TRAI doesn't favour the implementation of net payment zero from January 2020.

"When you had implemented 6 paise charge, 4G traffic was one per cent. Today that traffic is much higher so the costs must have come down," he said.

Previously, Jio had also questioned TRAI's jurisdiction and reasons to tinker with the original schedule for implementation of the zero termination charge regime from January 1, 2020. Launching a scathing attack on the TRAI, Jio said nothing prevented incumbent operators from switching their networks to efficient VoLTE all this while.

Jio had pointed out TRAI's consultation paper does not address the termination charges payable after the deadline if the date for its implementation is indeed deferred.