IUC report: Reliance Jio alleges Rs 100,000 cr bonanza to incumbents
In a strong attack on incumbent operators, Reliance Jio alleged that the failure to implement the India Telecommunication Regulatory Authority (TRAI) interconnection user fee (ICA) report in 2011 Has granted an enormous advantage of more than 100,000 creations to the three Main Operators over the past five years.
In 2011, TRAI recommended that the UCI’s costs be reduced to half of 20 paisa to Rs 10 paisa and gradually move to the bill and keep the model by 2014 in an affidavit to the Supreme Court.
Instead of moving to a zero model of the IUC in 2014, it was only reduced to 14 paisa with the mandate it will be reviewed after three years.
Jio said that the three incumbents benefited from the failure to implement this recommendation.
The over-recovery which the three incumbents have made is based on the net present value (which includes interest income) and represents the excessive recovery made by them over the actual cost of what they must incur for termination. The presentation was given by the company to TRAI on Tuesday.
Jio also pointed out that India is evolving against the global trend of UIC to be reduced. The UIC, which accounted for only 10 per cent of the average tariff in 2003, rose to 45 per cent.
It indicates that the UIC as a percentage of the price of the mixed retail service is currently 1% in China, 9% in the United Kingdom, 11% in France and 13% in Japan.
Jio submits that the present value of the excess takeover for the three licensees was in the order of Rs 20,624 crore during the year ending in 2017.
Promoting the case for a bill and retaining a model for IUC Jio stated that the cost of broadcasting voice over an IP network is practically nil and it seems that new operators subsidize only the incumbents Due to their inefficiencies and older networks. But this is unfair to customers.
However, the Association of Cellular Operators of India, which represents the general manager of mobile operators, Rajan Matthew, states:
“Earlier there was a net set up between the incumbent operators because the number of calls terminated between their networks was more or less symmetric.But with Jio coming over there was an asymmetry of traffic, Which made it possible to identify this problem.
So you can not say that the holders have already made a huge bonanza ”
Matthieu also points out that, with painful tariffs due to the entry of Jio, the UIC percentage must increase and assert that the UIC has increased abruptly is not fair