Reliance Jio welcomes TRAI cutting IUC charges; suggests customers will be final beneficiary

With speculations aplenty on how Reliance Jio will benefit from the recent reduction in interconnection charges by the Telecom Regulatory Authority of India (TRAI), the Mukesh Ambani-owned telecom disruptor has denied it will get any benefits from the reduction in IUC rates by the regulator in a statement.

Reliance Jio stated that it will not keep any benefits from the decrease in IUC rates for itself and will pass it on to its customers. "We deny any benefits to Jio. At a time when the world is moving towards IP-based technologies, cost of voice has come down to a fraction of a paisa and the customers should enjoy this advantage," a Reliance Jio statement said.

Since TRAI publicised the new IUC regulations yesterday, it is being assumed that the smaller telecom service providers like Reliance Jio, Reliance Communications, and Tata Telecommunications will reap benefits from the change in rules.

In reaction to the reduction in interconnection charges by TRAI, Vodafone had expressed its dissatisfaction with TRAI cutting interconnection charges, calling it a retrograde move.

"This is yet another retrograde regulatory measure that, unless mitigated, will have serious consequences for investment in rural coverage, undermining the government's vision of Digital India," Vodafone said in a statement.

But, Reliance Jio has also hit back at the argument of the incumbent telecos. In a strongly worded statement, Reliance Jio said: "It is appalling that the incumbent operators have still gone ahead and made untrue and baseless allegations against the process for determination of IUC or the regulator. The incumbent operators have a history of opposing all the IUC regulations over the last 8 years, but have not been successful in thwarting passing of the benefits of lower IUC to customers."

It further added: "References to financial stress in the industry or the need for IUC to promote rural coverage again shows the attitude of the incumbent operators wherein IUC is being treated as a subsidy that the Indian customers must pay to sustain these operators financially. On the contrary, it is a fact that the high cost IUC regime thus far has caused financial stress for the smaller and new operators."