Interconnect user charges (IUC): telecom sector

                                #IUC

 Interconnect user charges (IUC) what is it??????

If we talk about simple language Jio user call to Airtal user so Jio pay some charges to Airtal.

This charges start in 2002-03 it is a 0.50 paisa then decries charges after some year 0.20 paisa. In 2014-15 this charges is renew it is a 0.14 paisa. In 2017 TOI thing to renew this charges it will be .6 paisa and in 2020 it will be zero.

Why IUC introduce?????

IUC is introducing for recover the cost and charges. But companies convert this charge in to profit.

Who have a profit????

Small company and new company they inter into the market they have a profit. Because if charges is decrease small company paying money is also decries. Loss to large company because their revenue is decrease.

What is current scenario?????

First position on the Airtel, then Vodafone, then Idea or Jio. If decries the IUC more benefit to jio. Because jio user call to other network jio pay IUC to other network is decrease. Vodafone and Idea merger complete in December. It is a largest market share and customer base company after merger. So they have loss in revenue  

Benefit

·         If new company inter into the market they have a benefit.

·         Small customer base companies have a benefit.

·         Customer have a profit tariff is available on cheap prices.