Industry Associations, Corporates & PSUs to partner for Youth-Led Nation Building (See 'Corp Brief') Railways approves Rs 135 Crore Rail Flyover Project at Bondamunda (See 'Corp Brief') ASMITA Cycling League, Upcoming Pune Grand Tour and High-Performance Pathways Among Key Discussion Points (See 'Corp Brief') BHASHINI showcases Multilingual AI Innovations at NCeG 2026 (See 'Corp Brief') Freight Loading by Railways crosses 419 Million Tonnes in Q1 (See 'Corp Brief') IBC - Disciplinary proceedings initiated against RP are inseparably connected with underlying CIRP proceedings pending before NCLT & cannot be viewed in isolation from factual matrix giving rise to complaint: HC (See 'Legal Desk') MPEDA concludes Second National Skill Olympiad on Seafood Value Addition (See 'Corp Brief') Transition to E-mobility must focus on Green Growth: Yadav (See 'Corp Brief') NRAA-funded Wild Rice Conservation Project secures Major Milestone in Assam (See 'Corp Brief') Patent - Application for grant of patent rejected without assigning due reasoning; omitted to apply mandatory five-step inventive step laid down vide F. Hoffmann-La Roche Ltd. & Anr. v. Cipla Ltd.; case remanded: HC (See 'Legal Desk') Nagaland Minister discusses roadmap for expanding lavender related Agri-entrepreneurship (See 'Corp Brief') MECON Achieves Miniratna Category-I Status with Net Worth Surpassing Rs 535 Crore (See 'Corp Brief') India achieves Major Milestone with Approval of Country's First Procedure for Helicopter Operations (See 'Corp Brief') CCI approves acquisition of equity of Royal Challengers by a consortium (See 'Corp Brief') Trade Marks - While Section 9(1)(a) bars registration of marks devoid of distinctive character, distinctiveness is to be assessed w.r.t the goods & not in abstract; composite marks must be evaluated as a whole: HC (See 'Legal Desk') CCI approves acquisition of shares in Krazybee Services and Finnovation Tech by Mars Equity Dragon Fund (See 'Corp Brief') CCI approves combination of 7 SPVs by Anantam Highways to Build India Infrastructure Fund (See 'Corp Brief') CCI okays combination of Nippon Life by DWS Group GmbH (See 'Corp Brief') CGST Delhi observes GST Pakhwada 2026 with stakeholder outreach (See 'Corp Brief') Arbitration and Conciliation - Writ court's intervention is unwarranted where arbitral award is reasoned, plausible and not perverse in any manner: HC (See 'Legal Desk') Railways approves Rs 499 Crore Mansi-Saharsa Doubling Project (See 'Corp Brief') Five New Sub-Regional Offices of ESIC to be set up across India (See 'Corp Brief') Govt extends full customs duty exemption on critical petrochemical products (See 'Corp Brief') Contempt of Court - Contempt jurisdiction cannot be invoked based on expansive or alternative interpretation of Court's orders - only clear, explicit & willful disobedience can be penalised: HC (See 'Legal Desk') CEA organizes All-India Electrical Safety awareness programme (See 'Corp Brief') Regional industries must become partners in Viksit Bharat journey: RM (See 'Corp Brief') Union Minister reviews MSME Schemes in Ladakh (See 'Corp Brief') Competition Act - Allegation pertaining to a service dispute between a user & a platform service provider w.r.t. subscription management, cancellation of service & compensation, does not come under ambit of Section 4 of the Act: CCI (See 'Legal Desk') MPEDA to organise Second National Seafood Skill Olympiad during Seafood Expo Bharat 2026 (See 'Corp Brief') India's Space and Biotechnology Sectors present new collaboration opportunities: MoS (See 'Corp Brief') IPR - After pronouncement of final judgment and decree under Order XX CPC, Court becomes functus officio and cannot grant liberty for post-decree impleadment of mirror/redirect/alphanumeric websites: HC (See 'Legal Desk') Office of Principal Scientific Adviser signs MoU with Data Security Council of India (See 'Corp Brief') Telangana strengthens Clean Cities Through Behaviour Change and Citizen Action (See 'Corp Brief') IPR - If essential and dominant feature of earlier mark is fully contained in later mark, and later mark is only pluralized form that conveys same meaning, later mark can be held deceptively similar: HC (See 'Legal Desk') JP Nadda To Release Guidelines For 'Anaemia Mukt Bharat Abhiyaan' Today (See 'Corp Brief') A&C - Restraint on alienation of assets cannot be imposed when such relief was neither specifically sought nor argued in Section 17 application: HC (See 'Legal Desk') Environment Minister inaugurates workshop on tiger reintroduction in Sariska (See 'Corp Brief') JP Nadda to unveil healthcare programme for children up to three years (See 'Corp Brief') A&C - Scope of scrutiny u/s 11 is confined to prima facie examination of existence of arbitration agreement & does not extend to adjudication of disputed questions of fact or law: HC (See 'Legal Desk') Tech Innovation and disruption in Construction Industry (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