Lower charges would benefit Reliance Jio
Business

Lower charges would benefit Reliance Jio

Investment Information and Credit Rating Agency(ICRA) today said the latest regulation passed by the Telecom Regulatory Authority of India (TRAI) would adversely impact the larger incumbents over the medium term, and in the process benefit the new entrant Reliance JioInfocomm Ltd (RJio).

The regulation reduces the Interconnect Usage Charges (IUC) on domestic wireless termination charges from the existing 14 paisa per minute to 6 paisa per minute. Further, TRAI has prescribed adopting the ‘Bill and Keep’ (BAK) regime from January 01, 2020, thereby reducing the IUC to zero.

Vice-President of ICRA Harsh Jagnani said here that at the industry level, IUC was largely a zero-sum but it impacts each operator differently.