IUC report: Reliance Jio alleges Rs 100,000 cr bonanza to incumbents
It alleged non-implementation
of the interconnect user charges (IUC) report has given a huge benefit to them
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NEWS : In a
strong attack on incumbent operators, Reliance
Jio has alleged that non-implementation of the interconnect user
charges (IUC) report of the Telecom Regulatory Authority of India (TRAI) in
2011 has given a huge benefit of over Rs 100,000 crore to the three major
operators in the last five years.
In 2011 TRAI had recommended that
the IUC charges be cut to half from 20 paisa to Rs 10 paisa and gradually shift
to the bill and keep model by 2014 in an affidavit to the Supreme court.
Instead of moving to a zero IUC model in 2014
it was only brought down to 14 paisa with the mandate that it will be
relooked after three years. Jio says that the three incumbents benefited due to
the non-implementation of this recommendation.
The surplus recovery that the three
incumbent operators have made is based on the net present value (which include
interest income) and represents the excess recovery made by them over the
actual cost of what they have to incur for termination. The presentation was
given by the company to TRAI on Tuesday.
Jio has also pointed that India is
moving against the global trend of IUC being reduced. IUC, which constituted
for only 10 per cent of the average tariff in 2003, has now climbed up to 45
per cent.
It says that IUC as a percentage of
the blended retail mobile price is currently 1 per cent in China, 9 per cent in
UK, 11 per cent in France, and 13 per cent in Japan.
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