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Oct 13, 2017 02:22 PM IST | Source:

Vodafone moves Bombay HC over IUC cut; seeks stay on TRAI order

Vodafone India confirmed that the company was taking a legal route.

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Vodafone India has moved the Bombay High Court against Telecom Authority of India’s decision to reduce interconnect usage charge (IUC) to 6 paise per minute. Vodafone asked for a stay, saying the move was unconstitutional, and beyond TRAI’s jurisdiction, the Economic Times reported.

The case was filed on Tuesday and will be heard with similar pleas filed last month by Bharti Airtel and Idea Cellular. All cases pertaining to the case are likely to be heard together on November 15.

“We have said that the move is against the Trai Act and powers of the regulator, which are the grounds that were made in the earlier case as well. We have also disclosed that the previous reduction from 20 paise to 14 paise has been challenged and is still pending in courts,” a senior executive was quoted as saying.

Vodafone India confirmed the company was taking a legal route.

The move has come after the regulator decided to reduce IUC to 6 paise per minute from 14 paise, from October 1 and remove the charge altogether from January 2020.

Interconnection Usage Charges or IUC is a regulation made by TRAI (Telecom Regulatory Authority of India) in which the Phone companies pay one-another Interconnection Usage Charges for using each other’s network to complete calls. IUC changes can often affect consumer tariffs and a reduction in the charge would lead to a loss in the net revenue.
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