Will Drop in Interconnection Charges Effect Telcos ?

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Trai Going to drop Interconnection Charges

What is term IUC? In telecommunications, the term interconnection refers to the physical linking carrier’s network with the equipment or facility not belonging to that network. The term may refer to a connection between a carrier’s facilities and the between a customer or the connection between two different carriers.

The indian telcome regular TRAI addresses the various issues related to interconnection arrangements. It also regulates the IUC.

IUC terms interconnection usage charge . Charges when users connect to other carriers or different carriers.IUC is the main source of income for telecom. This is a charge payable by a service provider, whose subscriber originates the call, to the services provider in whose network the call terminates. A big player like Vodafone, Bharti Airtel, and the idea would prefer to hike an IUC or a status quo because a significant part of the network is still on 2G for the network cost are higher .

New entrant jio would like to nil or termination of IUC. TRAI is considering to low the charges to 6 paise per minute comes the need for the competition of jio owned by Mukesh Ambani. TRAI looking to scrapping full voice value to nil up-to 2020 year. No interconnection charges on the voice call. The voice call may be full cheaper of free than the internet data .

Disruption in Telecom Industries

Jio new entry to telecom industries with the launched of 4G with free voice call with any network .New technology introduced bring disruption to existing business .

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Many market leaders disrupt from the new innovation and new technology introduced consumers like disruption due to profit and benefit to them. Like Nokia come back into the market again make disruption between the mobile industries. Due to the Chinese has taken over the mobile market new entry makes disruption to their losing sale from a competitor.

This time Trai comes to disruption to benefit the consumers with low rates in voice call and up to nil rate in the future disrupt the telecom industries due to IUC is the main source of income of Telecom players everywhere. No one wants to drop their charges to Nil in voice call the income will be drop due to this disruption .

In next year 5G technology coming to Disrupt all the telecom players to play with the competitors or going out of the competition by selling their full business to current giant telecom players .

Many telecom operators like Bharti Airtel, Vodafone and Idea are opposed to less IUC and Nil IUC in the future. Its profit the consumer and enhanced the competition between telcos. New regulation are opposed by telecom operators except reliance jio owned by Mukesh Ambani .

All are fighting with the jio disruption competition reduced the cost of the call and also the internet services charges going lower than the older time when for 1 GB consumer need to pay more than RS 300 or more according to other operators. Many operators have reduced their plan to fight with jio. Dirty cheap tariff rates from jio cause less in all other services charges from the other telecom company .

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