In a letter to the Department of Telecom, Vodafone said the financial burden on the industry has reached a level where it is unviable for operators to provide services.
Idea's move comes after the Securities and Exchange Board of India (Sebi) and exchanges gave their conditional nod to the proposed USD 23-billion merger deal that would create the country's largest telecom operator.
Indian telecom companies are seeking mergers and acquisitions to beat tough competition.
IUC is important not only from the perspective of operators as it gives them a revenue stream, but it is also a key component of voice tariffs and, therefore, also has a bearing on consumers’ monthly bills.
The Comptroller and Auditor General (CAG), in its latest report tabled in Parliament today, said its audit indicated "total understatement of adjusted gross revenue (AGR) of Rs 61,064.56 crore" by six operators.
The company said the rise in organic service revenue, which was ahead of market forecasts of 1.4 to 1.9 percent, gave it confidence in its outlook for the full year, when it expects to grow core earnings by 4-8 percent.
Any change in IUC has a direct impact on mobile call rates as the charge is taken into account while setting telecom tariffs.
Although it's a remote possibility, even an open offer happens, there is limited upside for investors.
Vodafone, on the other hand, said that call connect charge - currently at 14 Paise - is already "below cost" and any further cut in these inter-operator charges could hurt rural coverage.
"The number of telephone subscribers in India increased from 1,194.58 million at the end of March 2017 to 1,198.89 million at the end of April 2017, thereby showing a monthly growth rate of 0.36 per cent," Trai said in its monthly subscriber report.
Meeker pointed that Indians spend 28 hours on an average per week browsing the web on their mobile phones out of which around 12.5 hours is spent accessing entertainment content
Justice Sanjeev Sachdeva also issued notice to the Telecom Regulatory Authority of India (TRAI) and sought its reply to Vodafone's plea alleging that despite the DoT asking it to reconsider its recommendation, it did not do so.
Revenues of large telecom companies have largely bottomed out, Bank of America Merrill Lynch (BoAML) said in a report.
The company’s revenue momentum was driven by subscriber additions and strong data revenues. Vodafone added 10 million broadband users through the fiscal taking its total mobile broadband user base to 37.7 million.
Average download speed on Reliance Jio network peaked on April 1 to 18.48 mbps from 16.48 mbps it registered a month ago, as per the data of Telecom Regulatory Authority of India (Trai).
"No, we have not written to them (Department of Telecom) yet. But we will be writing soon... We will be responding certainly this month. It will happen very quickly," Trai Chairman RS Sharma told PTI.
Upon completion of merger, Vodafone will transfer 4.9 per cent shares of merged entity to Aditya Birla Group for Rs 3,874 crore.
Overall deal activity in the January-March quarter witnessed an unprecedented three-fold year-on-year rise in value terms, driven solely by the Vodafone-Idea mega merger, which accounted for 80 per cent of the total values.
Since racking up 100 million subscribers in record time, telecom's new entrant has gone all out to ensure that it retains its subscriber base.
In December quarter, revenues of nine telecom operator declines by 1.1 percent, according to CARE Ratings. The operating margin for the industry stood at 28.43 percent.
Telecom operator Vodafone today complained to Trai that Reliance Jio is still "luring customers" to subscribe the 'Summer Surprise' offer despite the regulator finding it in violation of norms.
According to quality of service norms, the complaint level should not be more than 0.1 per cent per 100 bills issued in one quarter.
The revenue of telecom sector from consumer services like mobile telephony and data dipped 10.5 per cent to Rs 37,284 crore in the October-December period over the previous three months, according to regulator TRAI.
Vendors claim RCom hasn't been paying IUC to some of them for over two months.
Telecom operator Vodafone will offer free incoming calls during international roaming on its network in 45 countries at a daily rental of Rs 500 along with all international and local outgoing calls for Re 1 a minute.