Jio (Reliance Jio Infocomm) has refused that the reduction of IUC (interconnect usage charge) might profit the new contestant and actually referred the cut “6 Years too late”, pointing out that it must have taken place as per directive of the regulator in 2011.
“There is no query of any benefit from the new regulation of IUC to Jio since it has previously passed on all the advantages to users. We reject any advantages to Jio,” the telecom operator owned by Mukesh Ambani claimed to the media this week in a statement. This was in reply to the current players opposing that the rate cut of IUC of almost 57% advantages only Jio and will result in losses for an economic segment already under money owing of Rs 5 Lakh Crore.
Bharti Airtel, the market leader, claimed that the rate of IUC, which has been brought in at a fully non-apparent style, advantages only one company that takes pleasure in a big traffic irregularity in its support. Vodafone this week in a statement claimed that this was a nostalgic move that will advantage only Jio and effect the sector especially in the rural coverage. Jio, which experts claim will arrive to profit from the loss of the current players, refuses these charges too.
“References to economic pressure in the sector or the demand for IUC to market rural coverage once more shows the approach of the current operators in which IUC is being considered as a subsidy that the users of India must give to support these companies financially,” claimed the company to the media in response to the email queries. Jio actually claimed that the high price IUC rule thus far has led financial pressure for the new and smaller operators.
The rates of IUC was cut from the current 14 Paise to 6 Paise each minute this week and the regulator claimed that it might be dropped from 2020 down to 0 Paise. Jio claimed that it was dreadful that the current operators made accusations that the fresh rates were baseless and not transparent. “The current operators have a past of protesting all the regulations of IUC since the last 8 Years, but have been unsuccessful in discomforting passing of the advantages of reduced IUC to the users.”
The telecom company that has been battling for the BAK (Bill and Keep) model claimed that the users will profit from this order.