Top telecom operators and the new entrant Reliance Jio is sparring once again, but this time over the interconnect usage charge (IUC).
In response to telecom regulator’s consultation paper on IUC, top players – Bharti Airtel, Idea and Vodafone – have asked for a calling-party-pays (CPP) rule to continue while Jio has suggested following a bill-and-keep model.
Under CPP, the method currently used in India, a company whose call originates has to pay a usage charge to the operator of the network on which the call terminates.
Under the bill-and-keep system suggested by Jio, the carrier on whose network call originates, and who bills the user, keeps the money.
The incumbents have alleged that review of IUC did not take place on grounds of
technological change. They have asked the regulator to put the review on hold. The request is to put the consultation paper process should be postponed by at least 6-9 months.
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Disclosure: Network 18, which publishes moneycontrol.com, is part of the Reliance Group.