CCI approves acquisition of equity in Continuum Green Energy by Chubu Electric Power (See 'Corp Brief') IPR - Goodwill of partnership is partnership asset, and only partners have right to property of firm subject to contract: HC (See 'Legal Desk') CCI nod for acquisition of majority shares in Volkswagen subsidiary by Bain Capital Investors (See 'Corp Brief') CCI fine with acquisition of 100% shareholding of FMC India by Crystal Crop Protection (See 'Corp Brief') IPR - Cable operator's licence did not extend to hotel's commercial use, as definition of subscriber under Cable Television Networks (Regulation) Act prohibits further transmission to any other person: HC (See 'Legal Desk') CCI okays acquisition of equity in IndiaFirst Life Insurance by BNP Paribas (See 'Corp Brief') HD Kumaraswamy launches Impact Report of MHI Industry Accelerator (See 'Corp Brief') A&C - Orders where Courts of Record refrain from exercising contempt jurisdiction are not appealable under Section 19 of CC Act: HC (See 'Legal Desk') NIFT Students make a Mark at WorldSkills Shanghai 2026 with Two Silver Medals (See 'Corp Brief') UIDAI unveils 5 new initiatives at Aadhaar Samvaad Kolkata (See 'Corp Brief') Ministry of Tribal Affairs and IGNCA sign MoU for Promotion of Tribal Cultural Heritage (See 'Corp Brief') IBC - Regulatory fee introduced by Insolvency and Bankruptcy Board of India with effect from Oct 01, 2022, is neither ultra vires IBC nor violative to Art 14 of Constitution: HC (See 'Legal Desk') Shekhawat felicitates 20 Award-Winning Artists at National Exhibition of Arts (See 'Corp Brief') CAQM approves revised GRAP Schedule; Tightens Measures for Vehicles (See 'Corp Brief') Civil Aviation Minister curtain-raises Routes Asia (See 'Corp Brief') IPR - If websites prima facie bear hallmarks of rogue websites and are predominantly engaged in facilitating copyright infringement, court can grant ad-interim blocking and anti-infringement relief against them: HC (See 'Legal Desk') Govt hands over first PRAMAAN certificates to AP and a Bamboo Farmer from Odisha (See 'Corp Brief') NITI Aayog organises National Workshop on 'Viksit Panchayat' (See 'Corp Brief') A&C - Validity of unilateral appointment of sole Arbitrator in arbitrations commenced before Oct 23, 2015, must be tested under pre-amendment regime: HC (See 'Legal Desk') India showcases Forest and Landscape Restoration Initiatives at COFO 28 in Rome (See 'Corp Brief') Railways approves Rs 122 Crore for 6 km Barbil-Bolanikhadan Doubling Project (See 'Corp Brief') Yadav reviews Delhi's Air Pollution Mitigation Plan with Delhi CM (See 'Corp Brief') IPR - Registered proprietor of well-known trademark is entitled to immediate ex-parte injunctive relief against anonymous entities operating rogue websites with masked identities: HC (See 'Legal Desk') Chouhan calls for Scientific Monitoring for Rabi Season 2026 (See 'Corp Brief') MoS pitches for wider Govt-Industry and Start-up collaboration in Space Sector (See 'Corp Brief') IPR - If both trademark infringement and passing off causes of action arise in Kerala, plaintiff cannot invoke Sec 134(2) of Trade Marks Act to club claims and force small Kerala-based defendant to litigate in Mumbai: HC (See 'Legal Desk') PM-MKSSY transforming Risk Management for India's Aquaculture Farmers (See 'Corp Brief') Nadda reviews Progress of Lady Hardinge Medical College (See 'Corp Brief') A&C - For awarding damages u/s 73 of Contract Act, proof of loss or injury is sine qua non, and Hudson Formula is no substitute for proof of damages: HC (See 'Legal Desk') CBN Rajasthan Unit seizes nearly four tonnes of contrabands (See 'Corp Brief') Ministry of Tourism exchanges MoUs with industry partners to strengthen tourism promotion (See 'Corp Brief') India moving from Defence Importer to Trusted Global Defence Supplier: RM (See 'Corp Brief') A & C - High Court erred in holding that petitions filed u/s 34 of the Act were barred by limitation, considering that applications were filed well within statutory limitation period: SC (See 'Legal Desk') NZP to celebrate Wildlife Week 2026 from 2nd - 8th October 2026 (See 'Corp Brief') HM launches various initiatives related to women empowerment in Kollam (See 'Corp Brief') Medical colleges rise from 387 to over 800: Patel (See 'Corp Brief') TradeMarks - When special law like Trade Marks Act restricts institution of suits to courts not inferior to District Judge, it remains entirely consistent with Commercial Courts Act, provided High Courts designate District Judges as commercial courts - case referred to Larger Bench: SC (See 'Legal Desk') ICAT marks 20 Years of Excellence with PM e-Drive Dialogue with the industry (See 'Corp Brief') From Rural Needs to Real-World Solutions: RuTAG 2.0 focuses on deepening Technology Impact (See 'Corp Brief') India International Water Week 2026 concludes with Focus on Climate-Resilient Management (See 'Corp Brief') A&C - Period of limitation u/s 34(3) of Arbitration Act must be reckoned from date of disposal of Sec 33 application, regardless of whether such application is ultimately found to be frivolous or sham: HC (See 'Legal Desk') An unsuccessful 'success fee' litigation (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