Concept of interconnect usage charge is outdated: Jio

Interconnect usage charge is an obsolete concept which relates to 2G networks, and telecom operators must invest in 4G networks given the rising digital connectivity, Mathew Oommen, President-Networks, Reliance Jio, said on Tuesday. Jio last week said it “had been compelled most reluctantly and unavoidably” to do this following the decision of the Telecom Regulatory Authority of India to review the date for scrapping interconnect usage charge from 1 January 2020, which has led to regulatory uncertainty. Bharti Airtel and Vodafone Idea would stand to gain if Trai decides to postpone the date of scrapping IUC as these telecom operators get more incoming calls than outgoing. “The concept of temporary, fixed etc is driven by the industry,” Oommen said on a question on whether Jio’s move to charge 6 paise a minute for calls was temporary.