Why Jio is charging 6 paise per minute for outgoing calls to Airtel, Vodafone ?

Reliance Jio will now charge 6 paise per minute as IUC charge for all outgoing calls to Airtel and Vodafone Idea. Jio says the IUC charge will be there temporarily. The has been an ongoing debate on the IUC (Interconnect Usage Charge) in the telecom industry for a while and the last we talked about it, both Airtel and Jio had reduced the ring time for outgoing calls to 20 seconds. However, the case is dealt with by the Telecom Regulatory Authority of India (TRAI) and while the outcome may take some time, Reliance Jio has already taken a move to offset the losses it has been incorporating due to the IUC.

In a surprising move, Jio has announced that it will charge customers for levying the IUC charge on all outgoing calls to other networks for the time being. The IUC charge set by TRAI is currently at 6 paise per minute and Jio will pass this expense to its customers if they are calling someone from another operator. Jio has come up with a few IUC plans that customers can purchase in order to make calls to other networks. The new Jio regulations have been implemented from Wednesday.

If you have a Jio number and you call someone using an Airtel or Vodafone-Idea number, you will be charged 6 paise per minute till the time you keep ringing. The calls will still be free to all other operator but you will have to pay 6 paise per minute till the time you ringing the other person.

However, if you are making a call to a Jio number or a landline number, then you don't have to pay anything. Also, all incoming calls, as well as WhatsApp calls, will stay unaffected from this. The IUC charge will also be applicable to postpaid users and it will be added to their billing cycle.

New Jio IUC plans

Jio is offering four new IUC plans with extra data benefits. Here are all the plans listed with the benefits:

* Rs 10 plan will offer 124 minutes of IUC minutes to non-Jio numbers and 1GB data.

* Rs 20 plan will offer 249 minutes of IUC minutes to non-Jio numbers and 2GB data.

* Rs 50 plan will offer 656 minutes of IUC minutes to non-Jio numbers and 5GB data.

* Rs 100 plan will offer 1,362 minutes of IUC minutes to non-Jio numbers and 10GB data.

Why is Jio doing this?

Jio wants the TRAI to go for zero IUC charge and that seems to be happening by early 2020. While other operators charge their customers for calls, Jio offers free calls on its network and hence, it has to bear losses as Jio pays the IUC charge for every call made to another network.

"The amendment to the IUC Regulations in 2017 was after considerable deliberations and consultations. In this background the consultation paper has created Regulatory uncertainty and therefore Jio has been compelled, most reluctantly and unavoidably, to recover this regulatory charge of 6 paise per minute for all off-net mobile voice calls so long as IUC charges exist," says Jio.

"Jio again assures its 35 crore customers that the 6 paise per minute charge on outgoing off-net mobile calls shall continue only till the time TRAI abolishes IUC, in line with its present regulation," says Jio.

Jio further says,  the price differential of free voice on Jio network and exorbitantly high tariffs on 2G networks causes the 35 - 40 crore 2G customers of Airtel and Vodafone-Idea to give missed calls to Jio customers. Jio network receives 25 to 30 crore missed calls on a daily basis. This huge missed call phenomenon converts the incoming calls to Jio into outgoing calls from Jio to other operators. The 25 to 30 crore missed calls per day should have resulted in 65 to 75 crore minutes of incoming traffic to Jio. Instead, the call back made by the Jio customers results in 65 to 75 crore minutes of outgoing traffic.

Hence, Jio will pass off the 6 paise per minute IUC regulatory charge to its customers until December 31, 2019, after which TRAI could be dropping the IUC charges to zero.