Jio calls the criticism IUC anti-poor; says the movement mine the Prime Minister's digital India


Reliance Jio, led by Mukesh Ambani, claimed that Trai's review of the call connection charges "sabotaged" the Prime Minister's vision for Digital India and would not only undermine the regulator's credibility, but investor confidence, as it protects the vested interests of certain former operators.

Continuing its incessant attacks on the regulator and former operators for the controversial IUC (interconnect usage charge) litigation that polarized the industry, Jio alleged that Trai's approach was arbitrary, wrong in law, unjustified and anti-poor.

Any change in the implementation of the original January 1, 2020 schedule will put an end to the free voice regime and will likely raise rates, which would be against the interests of consumers, said Jio.

Generally, a telecommunication operator pays calls made by its subscribers to a competing network. This is done by paying the competing network interconnect fees, which are currently 6 per minute.

Trai's decision to reopen the deadline for the termination of call termination charges on competing networks beyond January 2020 had forced Jio to recently charge a fee of 6 paisa per minute for its users, thereby end to its free communications regime.

In his official response to the Indian Telecom Regulatory Body (Trai) on the IUC case, Jio claimed that "some incumbent operators" wanted their large number of 2G customers to remain destitute and deprived of their fruits forever. of the digital revolution. The Trai consultation document "protects and perpetuates the vested interests" of these actors, he added.

Jio accused some former operators of exploiting their 2G customers by charging "extortion rates" for voice calls, which are offered free of charge to all 4G customers of Jio.

"The consultation paper … undermines and sabotages the prime minister's vision and mission regarding digital India," said Jio in his commentary on the consultation document of Trai.

It is unfortunate that instead of taking advantage of the poor and marginalized strata of Indian society, the consultation paper has chosen to help the profiteers in the telecommunications sector, Jio said.

The working paper wants India to remain technologically stagnant and backward, the company said.

This decision is inconsistent with previous decisions of the authority that the zero termination tax regime would come into effect for all types of calls as of January 1, 2020, said Jio.

He added that the current review, which violates the principles of regulatory predictability, was launched with a predetermined mind.

"… this consultation paper has not been issued to address the asymmetry of traffic, but to address the alleged financial burden of one or two operators at the expense of subscribers' interests and of the telecommunications sector, as well as the credibility of the authority, "That said.

The latest to arrive, known for its disruptive rates, asserted that the current trend indicates that traffic asymmetry (one of the main reasons for the reorientation of Trai on the IUC) should occur. to reverse within a few months and that the current receivers will become payers, The prescribed deadlines will not deter any operator of the alleged financial stress. Switching to a zero termination cost plan will reduce overall rates for customers, Jio said.

Jio stated that if Trai "calculated the recalculated termination charges, it would be less than $ 1 per minute at this point", and added that the low residual value fully justifies the need to move to the zero termination royalty regime.

Jio warned that Trai's decision would have a "chilling effect" on all new investments and future newcomers who will be deterred by this barrier to entry, and even if the advanced world will move towards 5G, the India will continue to promote 2G and keep millions of users out of digital India.

"There is no reason to change the implementation date of the BAK scheme (bill and keep) as of January 1, 2020," added Jio.

(Only the title and image of this report may have been reworked by Business Standard staff, and the rest of the content is generated automatically from a syndicated feed.)

.