Will Jio Phone Launch Benefit from TRAI’s IUC Cut?

The interconnection usage charges or IUC have recently been reduced by Telecom Regulatory Authority of India (TRAI) – India’s telecom watchdog – in all likelihood, this is set to benefit the entry of Jio Phone into the India market.

The much talked about Reliance Jio Phone – is likely to make its entry across the Indian markets by the first week of October 2017.

The timing of Trai decision to cut IUC almost coincides with the launch of Jio Phone and in the backdrop of this IUC cut – Reliance can find itself in an ideal position to further pack more offers around Jio Phone.

As per the new regulation proposed by TRAI - for Mobile to Mobile, termination charge has been reduced from 14
paisa per minute to 6 paisa per minute

It is important to note that when Reliance announced its Jio Phone pricing plan two months ago, tariffs were a bit on the higher side high for the segment. And now the IUC cut can surely help in this direction.

Reacting to this development, Vodafone India has expressed its disappointment on the issue.

"We are disappointed with this decision and are now considering our options in response to it. The Indian telecoms industry is already experiencing the greatest period of financial stress in in its history. This is yet another retrograde regulatory measure that will significantly benefit the new entrant alone while adversely affecting the rest of the industry as a whole. Unless mitigated, this decision will have serious consequences for investment in rural coverage, undermining the Government's vision of Digital India," said a statement from Vodafone India.