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Who to blame for IUC - Jio or TRAI?

Question asked by Kaustubh Katdare in #Coffee Room on Oct 10, 2019
Kaustubh Katdare
Kaustubh Katdare · Oct 10, 2019
CEO @ CrazyEngineers, TEDx Speaker, Guitarist

Jio announced that they'll charge about 6p/minute for all the outgoing calls from their network to other networks; and Jio users seem to be terribly upset. Those who don't know why Jio is going back from its original promise that outgoing calls to all the networks across India will be free forever; here's a quick note. 

IUC is short form of Interconnect User Charges. When a user dials a call from Jio to other network, then Jio has to pay the other network at the rate of 6 paise/minute. These charges were determined by TRAI aka Telecom Regulatory Authority of India in 2017. TRAI had also confirmed that they will abolish the IUC totally starting January 01, 2020. 

It was Jio's market plan to bear the IUC charges so that they could offer outgoing calls completely free to their users. However, in the recent development, TRAI is backtracking from its promise to abolish IUC charges completely and continue to charge for the outgoing calls to other networks. 

This puts Jio in a fix! Jio's plan was to bear the IUC charges till end of 2019; however, it's now become unsustainable for Jio to keep paying for IUC charges out of its own pocket. 

Note: Other operators were always charging the users for IUC charges. 

Now the question arises - who should we really blame for the "new charges"? On one hand - Jio should have considered a possibility that TRAI may backtrack from its promise and on the other hand - it's actually the TRAI that now wants to extend the IUC deadline. 

What's your take on this? 

Posted in: #Coffee Room
Ramani Aswath
Ramani Aswath · Oct 10, 2019
Member of CrazyEngineers

1. JIO can shut out all others and become the sole network.

2. A typical Indian Catch 22. You are damned if you do and you are damned if you don't.

Abhishek Rawal
Abhishek Rawal · Oct 11, 2019
Linux and Telecom professional

Jio is exploiting the off-net ring time duration to ease their financial burdens since very long. Now that they found that providing cheap-ass LTE services to gain more customer base on ultra expensive network where maintenance itself is huge investment; have huge consequences, they inflict charges on customer while it solely should be matter between operators.

When you provide super cheap LTE service, two of the things could happen :
1. User will port to new operator services.
2. Bhai call krna balance nahi hai, tere paas to Jio hai na.
When point 2 happens a lot, shit gets real.

There is no one to blame here, IUC charges shall prevail.

Anoop Kumar
Anoop Kumar · Oct 14, 2019
Member of CrazyEngineers

Airtel made its move by not charging extra or IUC.

As far JIO goes, 3 Years on !!! still JIO is just backup secondary number for large portion of people. It still just back up with cheap data plan with JIO Tv and live matches. But still, the main function of phone, CALLING is less reliable than Airtel. JIO has no option but to roll back the IUC charge.  

[Prototype]
[Prototype] · Oct 28, 2019
Member of CrazyEngineers

This was bound to happen, sooner or later.

I believe Jio is hoping that more users will move to Jio and make it their primary number. Either way, they are still giving 1000 mins for free with other operators. That's decent I guess. 

The only impact I see in near future will be that the relationships are going to be expensive. ? 
It could also mean, the babu's and sona's might get a sigh of relief from infinite duration calls due to calls getting expensive. ? 

Anoop Kumar
Anoop Kumar · Oct 31, 2019
Member of CrazyEngineers

I agree, 1000 min cap is much better strategy which cover 99% users. 

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