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CAA will be implemented very soon: Nadda

Nadda told social groups in Siliguri that CAA will be implemented very soon, it got delayed due to COVID-19 pandemic.
The Economic Times
English EditionEnglish Editionहिन्दीગુજરાતી
| 19 October, 2020, 08:37 PM IST | E-Paper
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    SEARCHED FOR:IUC CHARGES

    Telecom sector AGR for Q4FY20 up 10% vs Q3: Trai data

    Overall sectoral minutes of consumption rose, with the all-India average minutes of usage (MoU) per subscriber per month from wireless services rising 5.34% sequentially to 750 in the quarter ended March.

    TRAI deferring zero-IUC regime to hit Voda Idea & Airtel, benefit Jio: Analysts

    Mukesh Ambani-led Reliance Jio now stands to pocket as much a...

    Telecom consumer body seeks removal of IUC on mobile calls

    Trai had proposed to move from the current IUC regime to the BAK (bill and keep) r...

    • “The (London-based) GSMA too has predicted that 12-13% of customers will continue to use 2G handsets till 2025,” Airtel said in its submissions to the Trai, which had sought comments on a proposal to defer the introduction of a zero IUC regime.

      Jio argued that there were no grounds to delay implementation of the zero-IUC regime since traffic symmetry between operators had been achieved. But, Airtel and Vodafone Idea countered that IUC should not come down to zero, from 6 paise at present, and should be postponed by at least three years.

      "The concept of points of interconnect and interconnection are related to 2G, its outdated," said Mathew Oommen, president, Jio.

      Mukesh Ambani-led Jio has maintained that if the Telecom Regulatory Authority of India postpones the scrapping of IUC from the planned January 2020 deadline, it would end up “subsidising two economically inefficient operators at the cost of users." The provision of such subsidies, Jio said, “is not within the domain of Trai’s functions.”

      Bharti Airtel and Vodafone Idea recently calculated their AGR dues at Rs 13,004 crore and Rs 21,533 crore, respectively, way below the Rs 37,700 crore pegged for Airtel (including Telenor) and over Rs 53,000 crore for Vodafone Idea by the Department of Telecommunications.

      Reliance Jio Director Mahendra Nahata said that the ratio of incoming and outgoing call is now at par with each other and traffic asymmetry can, therefore, no longer be the reason to delay implementation of Bill and Keep (BAK) regime. Nahata alleged that the subscriber traffic is being diverted to 2G, 3G network to show cost of voice is high.

      Each new tariffs will come with 1000 minutes of offnet IUC minutes, which would have cost users Rs 80 if purchased separately. The plans also have data worth 56GB, 112 GB and 168 GB worth of data.

      This came on the back of Jio levying a charge of 6 paise per minute on its subscribers.

      The IIFL Institutional Equities estimates an Ebitda upside of 10% , 50% and 8% for Jio, Vodafone Idea and Airtel respectively in FY21, if the telecom regulator keeps interconnect usage charges at 6 paise per minute till FY21 at least.

      The company, which had earlier issued special plans for smartphone users, has come out with four new monthly plans in the range of Rs 75 to 185 with 500 minutes of talk time for calls made to other networks.

      Trai on September 18, had invited public views to its consultation paper to re-examine the original January 1, 2020 deadline for IUC.

      "There's a need to extend the applicable date, and zero termination charge should not be applicable from January 1, 2020, as mobile termination is a cost-based charge, and can never be zero,” Voda Idea said in its submission to Trai.

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