Ministry of Mines advances India's Critical Mineral Mission (See 'Corp Brief') India embraces global partnership in healthcare: Pharma Secy (See 'Corp Brief') CMD, SAIL reflects on resilience, transformation and future readiness at Company's 53rd AGM (See 'Corp Brief') Hindustan Copper introduces Common Uniform for all (See 'Corp Brief') CCI nod to JSW Paints to buy 75% stake in Akzo Nobel (See 'Corp Brief') IBC – If substantial assets or a new line of business is discovered which goes beyond the capacity of the PRAs or where the existing PRAs will not be able to provide value for the same, fresh Form G may be required: IBBI (See 'Legal Desk') CBDT, field offices to undertake Special Campaign 5.0 for swachhata and efficiency (See 'Corp Brief') CCI approves acquisition of Jaiprakash Associates by PNC Infratech (See 'Corp Brief') CCI allows Triumph Composites to buy entire equity of IPM & OC India into Owens-Corning (See 'Corp Brief') Reddy launches Corporate Salary Package & Enhanced Ex-Gratia for Coal India Workforce (See 'Corp Brief') Competition Act - Conduct being indulged into by OP prima facie amounting to imposition of unfair conditions upon dealers by OP in sale of decorative paints, is contravention of Sec 4(2)(a)(i): CCI (See 'Legal Desk') PM inaugurates infra projects worth Rs 40000 Crores in Bihar's Purnea (See 'Corp Brief') India positioned to become world's top automobile manufacturer: Gadkari (See 'Corp Brief') Startup India-DPIIT signs MoU with CarDekho Group to strengthen ecosystem in mobility (See 'Corp Brief') Companies Act - If sale of disputed property was done with a fraudulent intention by concealment of fact qua pending winding up petition by directors qua purchasers, then process u/s 531, 531A, 533, 536(2), 537 of Companies Act is frustrated: HC (See 'Legal Desk') Nation gears up for Swachhata Hi Seva 2025 (See 'Corp Brief') EPFO Officer selected for World Bank - Milken Institute Program (See 'Corp Brief') Centre to promote research and preserve Heritage languages and traditions (See 'Corp Brief') Competition Act - Seller's right to withhold any gains from liquidation arises only when buyer refuses to lift contracted material and did not perform his part of contractual obligations: CCI (See 'Legal Desk') 'National Agriculture Conference - Rabi Abhiyan 2025' to begin in New Delhi today (See 'Corp Brief') A country cannot feel sense of pride if own people do not speak native language: HM (See 'Corp Brief') DFS organises PSB Manthan 2025 (See 'Corp Brief') PMLA - If additional proceeds of crime are unearthed by ED during further investigation, then it can inform CBI for taking further necessary action at their end: SAFEMA (See 'Legal Desk') IICA DG highlights ESG Integration and IBC 3.0 at Corp-Con 2025 (See 'Corp Brief') Prajapati Assumes Charge as Director of All India Institute of Ayurveda (See 'Corp Brief') SEBI - Fact that transactions in particular contract were reversed with same counterparty indicates prior meeting of minds with view to execute reversal trades at pre-determined price: SEBI (See 'Legal Desk') Board to Report what's Right what's Not (See CORP EINSICHT)

Calls to rival networks; Jio to charge @ Rs 6 paise/min

Published: Oct 09, 2019

By TIOLCORPLAWS News Service

NEW DELHI, OCT 09, 2019: RELIANCE Jio, owned by the billionaire Mukesh Ambani has issued a statement today that from now on till such time that TRAI moves to Zero termination of IUC charge regime, the company will charge its customers 6 paise per minute for voice calls made to rival phone networks. To cushion the stance, it was also announced that it will compensate its customers by giving free data of equal value.

Jio cited traffic asymmetry as the cause of such decision where it continued to pay IUC from its own resources to Airtel and Vodafone-Idea et al while offering free voice to its customers despite the repeated stance of TRAI and the amendment already made to the regulations to reduce the IUC to Zero. So far, in the last three years Jio has paid nearly Rs.13,500 crore as NET IUC charges to the other operators.

Interconnect Usage Charge or IUC is a cost paid by one mobile telecom operator to another, when its customers make outgoing mobile calls to the other operator’s customers. These calls between two different networks are known as mobile off-net calls. IUC charges are fixed by Telecom Regulatory Authority of India (TRAI) and are currently at 6 paise per minute.

In an affidavit dated October 29, 2011, TRAI has affirmed its stance towards bringing the IUC charges to zero before the Supreme Court by submitting that the TRAI is of the opinion that there should be progressive reduction in termination charges finally converging to zero termination charge at the end of 2 years from the present. Though the time period to do so was by 2014, at that time neither 4G nor Jio existed. However, after a comprehensive review of the IUC regime through a transparent and elaborate consultation process in 2016, TRAI issued the Telecommunication Interconnection Usage Charges (Thirteenth Amendment) Regulations, 2017 which was placed before the Parliament. The effect of amendment was to reduce IUC for mobile calls from 14 paise/ minute to 6 paise/minute from October 01, 2017 and then reducing the IUC charges to zero from January 01, 2020.

The Reliance Jio statement further lamented that even after the TRAI stance, while the incumbent operators reduced voice tariffs for their 4G customers, they continued to charge exorbitant tariffs to their 35 - 40 crore 2G customers, and in fact increased the tariffs for voice calls to around Rs. 1.50/ minute. The price differential of free voice on Jio network and exorbitantly high tariffs on 2G networks caused the 35 - 40 crore 2G customers of Airtel and Vodafone-Idea to give missed calls to Jio customers. This subsequently converted into a huge missed call phenomena where the incoming calls to Jio was converted into outgoing calls from Jio to other operators. Since the rival networds kept their 2G voice tariffs high, this led to asymmetric of the off-net voice traffic which was earlier symmetrical for Jio.

Citing such traffic asymmetry as the only ground in the recently floated consultation paper, TRAI had reopened the closed chapter on IUC, which has already been made zero with effect from January 01, 2020 by amendment to IUC Regulations. In this background the consultation paper had created Regulatory uncertainty. This uncertainty was cited by Jio as the compelling factor to 'reluctantly and unavoidably' make a move to recover regulatory charge of 6 paise per minute for all off-net mobile voice calls so long as IUC charges exist.

Nevertheless, Jio has ensured that it stands firm on its commitment to offer the highest value to its customers, and there is no 6 paise per minute charge on:
++ all Jio to Jio calls;
++ all incoming calls;
++ Jio to landline calls; and
++ calls made using WhatsApp or FaceTime and similar platforms.

In addition to this, Jio obliges to provide additional data entitlement of equivalent value based on IUC top-up voucher consumption where the end result is touted as no increase in tariff for customers

TIOL CORP SEARCH

TIOL GROUP WEBSITES