Reliance Jio introduces IUC Top-Up Vouchers to charge users 6 Paisa/Min for Outgoing Calls to Other Networks

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Charges are temporary. You are getting 1 GB data compensated for every 10 bucks spent because they couldn't keep their forever free voice calls promise. Still will would consider Jio unethical for charging for IUC?
 
DJ Roy said:
Charges are temporary. You are getting 1 GB data compensated for every 10 bucks spent because they couldn't keep their forever free voice calls promise. Still will would consider Jio unethical for charging for IUC?
Click to expand...
They are using wrong method to force TRAI to do what they want, this is not how things work. They are supposed to follow the procedure and convince the regulator instead of dragging customers in their fight.

They have reduced data cost in India but this doesn't means that we will now blindly follow whatever they throw at us. They want Monopoly, IUC charges help other operators, if it is removed then it will be even harder for remaining 2-3 companies to survive. Without competition they will be free to charge us anything.
 
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Abhinav842 said:
They are using wrong method to force TRAI to do what they want, this is not how things work. They are supposed to follow the procedure and convince the regulator instead of dragging customers in their fight.

They have reduced data cost in India but this doesn't means that we will now blindly follow whatever they throw at us. They want Monopoly, IUC charges help other operators, if it is removed then it will be even harder for remaining 2-3 companies to survive. Without competition they will be free to charge us anything.
Click to expand...

YOU are misinterpreting whols thing...It was TRAI only who had proposed n decided from 2003 that gradually they will end IUC....So its not like that bcz they want to favor JIO thats y they wnt to end... Before JIO it was already decided from 2003...N Why IUC should be scrapped There is a Strong N big valid reasons behind it...
N TRAI have already Given Explanation N reason in There IUC memorandum that Why IUC should be zero...YOU can check that PDF here Go n read whole document...

https://main.trai.gov.in/sites/default/files/IUC_Regulations_13th_Amendment_1992017.pdf

Here is some Highlight points from it.. try to understand that Why Trai wnt to END this. this IUC its actually an anti consumer policy...

Now read TRAI explanation ..

Accordingly, The Authority is of the view that in case the present regime of cost-
based domestic termination charge is continued for long, it would hamper the
movement of the sector towards (i) deployment of more efficient technologies;
and (ii) more innovative and customer friendly tariff offerings; and, in turn, it
would be detrimental to the growth of telecommunication services sector. In
case, a TSP continues to get a cost-oriented termination charge estimated on the
basis of yester-years’ network technology (such as 2G or 3G), where is the
incentive for him to migrate towards a more efficient network technology (such
as 4G) requiring capital investments in short-run.
48. The Authority further noted that more than 80% of the spectrum held by various
service providers is liberalized spectrum wherein they can use any technology of
their choice. Since 2010, Operators are acquiring spectrum which can be used
for 3G/4G technologies. The Authority further noted that there are no new
networks launched using the standalone 2G technology in the past five years.
Practically all telecom service providers have embarked upon the path of
modernizing their networks. This is to carry traffic on IP in major Parts of their
network and to cater to the requirements of the market. Operators are
increasingly running their networks for data services and voice is becoming a by-
product. IP based technologies are primarily for data services with voice running
as an application. As data for demand has been increasing, the share of voice
will keep on reducing and there would be hardly any cost to carry voice traffic,
including terminating traffic.
49. As mentioned above, the cost of terminating the call in packet switched network
is so small that if majority of operators move to packet switched technologies
there would be no need to fix the termination charge and it will virtually amount
to BAK. BAK or sender-keeps-all is a method of interconnection pricing in which
the originating service provider keeps the revenue billed i.e. there is no
settlement of termination charges for off-net calls.
Consumer Tariffs
50. It has been observed that reducing termination rates has benefitted consumers
and enhanced competition. Going the full distance i.e. reducing terminating
rates to zero by introduction of the BAK regime would help in immediately
realizing these benefits. The Bill and Keep regime will encourage flat rate billing
and time differentiated charges, both of which will improve capacity utilization
and will be in the interest of consumers. It will also reduce the inter-operator off-
net traffic imbalance, and thus could help in convergence to an equilibrium
situation.
51. The Authority further analyzed the case of suitability of BAK regime in the
country. The Authority observed that when a TSP establishes a network, it is not
only for sending but also for receiving calls. The operator, therefore, does not do
anything special or extra to provide for receiving another service provider’s calls.

.Thus, additionality of costs for receiving calls, in the strictest sense, is close to
zero. The revenue from termination charges does not go to pay for any specific
additional expenditure caused by the call termination, but it is just a partial
compensation of the total costs incurred for creating and operating the network.
Measuring costs caused by another service provider’s incoming calls is more
challenging and there is no general agreement across regulators as to any single
methodology that can be adopted to arrive at the termination price. Depending
on the methodology used, the result is different. There is, therefore, a case for
introduction of a Bill and Keep regime.
Pro-Competition


54. The Authority has observed a clear trend in the market of very low tariffs for on-
net calls and higher tariffs for off-net calls, especially from the incumbent
operators. The justification offered by these operators is that they incur cost of
IUC for off-net calls. It is intriguing because there should also be a cost for on-
net calls as work done for terminating call is the same. This price differential,

which is higher than the IUC rate, is clearly a way for incumbent operators to
subsidise on-net calls, and is anti-competitive. Moving to BAK method will result
in elimination of price differential between on-net and off-net calls and will
reduce overall tariffs for customers. The elimination of IUC will result in direct
benefit to customers through lower tariffs.
 
GJ mit said:
[


YOU are misinterpreting whols thing...It was TRAI only who had proposed n decided from 2003 that gradually they will end IUC....So its not like that bcz they want to favor JIO thats y they wnt to end... Before JIO it was already decided from 2003...N Why IUC should be scrapped There is a Strong N big valid reasons behind it...
N TRAI have already Given Explanation N reason in There IUC memorandum that Why IUC should be zero...YOU can check that PDF here Go n read whole document...

https://main.trai.gov.in/sites/default/files/IUC_Regulations_13th_Amendment_1992017.pdf

Here is some Highlight points from it.. try to understand that Why Trai wnt to END this. this IUC its actually an anti consumer policy...

Now read TRAI explanation ..

Accordingly, The Authority is of the view that in case the present regime of cost-
based domestic termination charge is continued for long, it would hamper the
movement of the sector towards (i) deployment of more efficient technologies;
and (ii) more innovative and customer friendly tariff offerings; and, in turn, it
would be detrimental to the growth of telecommunication services sector. In
case, a TSP continues to get a cost-oriented termination charge estimated on the
basis of yester-years’ network technology (such as 2G or 3G), where is the
incentive for him to migrate towards a more efficient network technology (such
as 4G) requiring capital investments in short-run.
48. The Authority further noted that more than 80% of the spectrum held by various
service providers is liberalized spectrum wherein they can use any technology of
their choice. Since 2010, Operators are acquiring spectrum which can be used
for 3G/4G technologies. The Authority further noted that there are no new
networks launched using the standalone 2G technology in the past five years.
Practically all telecom service providers have embarked upon the path of
modernizing their networks. This is to carry traffic on IP in major Parts of their
network and to cater to the requirements of the market. Operators are
increasingly running their networks for data services and voice is becoming a by-
product. IP based technologies are primarily for data services with voice running
as an application. As data for demand has been increasing, the share of voice
will keep on reducing and there would be hardly any cost to carry voice traffic,
including terminating traffic.
49. As mentioned above, the cost of terminating the call in packet switched network
is so small that if majority of operators move to packet switched technologies
there would be no need to fix the termination charge and it will virtually amount
to BAK. BAK or sender-keeps-all is a method of interconnection pricing in which
the originating service provider keeps the revenue billed i.e. there is no
settlement of termination charges for off-net calls.
Consumer Tariffs
50. It has been observed that reducing termination rates has benefitted consumers
and enhanced competition. Going the full distance i.e. reducing terminating
rates to zero by introduction of the BAK regime would help in immediately
realizing these benefits. The Bill and Keep regime will encourage flat rate billing
and time differentiated charges, both of which will improve capacity utilization
and will be in the interest of consumers. It will also reduce the inter-operator off-
net traffic imbalance, and thus could help in convergence to an equilibrium
situation.
51. The Authority further analyzed the case of suitability of BAK regime in the
country. The Authority observed that when a TSP establishes a network, it is not
only for sending but also for receiving calls. The operator, therefore, does not do
anything special or extra to provide for receiving another service provider’s calls.

.Thus, additionality of costs for receiving calls, in the strictest sense, is close to
zero. The revenue from termination charges does not go to pay for any specific
additional expenditure caused by the call termination, but it is just a partial
compensation of the total costs incurred for creating and operating the network.
Measuring costs caused by another service provider’s incoming calls is more
challenging and there is no general agreement across regulators as to any single
methodology that can be adopted to arrive at the termination price. Depending
on the methodology used, the result is different. There is, therefore, a case for
introduction of a Bill and Keep regime.
Pro-Competition


54. The Authority has observed a clear trend in the market of very low tariffs for on-
net calls and higher tariffs for off-net calls, especially from the incumbent
operators. The justification offered by these operators is that they incur cost of
IUC for off-net calls. It is intriguing because there should also be a cost for on-
net calls as work done for terminating call is the same. This price differential,

which is higher than the IUC rate, is clearly a way for incumbent operators to
subsidise on-net calls, and is anti-competitive. Moving to BAK method will result
in elimination of price differential between on-net and off-net calls and will
reduce overall tariffs for customers. The elimination of IUC will result in direct
benefit to customers through lower tariffs.
Click to expand...

The IUC was started in 2003 itself at 50 paise per minute. Later this cost was being reduced in 2004, 9, 15 and 17, with same method of consultation papers. Where you read that in 2003 it was decided to End IUC??

Call cost for operators is much higher on 2G while it is just 0.11 paise per minute on 4G, written in the same 60+ pages PDF you attached. Who benefits directly from this? Who has 4G only network in India? If 0 IUC is implemented then operators have to shut down 2G network and then those people will buy Jio Phones, who will get profit?
 
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