INTERCONNECT USAGE CHARGE (IUC)

Interconnection in Telecom: 

• It refers to an arrangement under which telecom players connect their equipment, networks and services with other Telecom Services Providers.
  
  
• This allows subscribers of one network to seamlessly communicate with those of another network or access the services offered by other networks. Thus, Telecom Regulatory Authority of India (TRAI) has termed interconnection as the “lifeline of telecommunications”.
  
  

Interconnect usage charge (IUC):

• These charges are paid by a telecom services provider whose subscriber makes a call to the service provider whose subscriber receives the call.
  
  
• There are various components of IUC:
  • Origination charges
    
    
  • Transit charges (carriage charges)
    
    
  • Termination charges
    
    
  • International termination charges
    
    
  • International settlement rates,
    
    
  
  
  
• Currently only calls made via wireless to wireless devices attract IUC in India.
  
  
• The Telecom Regulatory Authority of India (TRAI) has fixed the IUC rates at 6 paise per minute, though it used be a little higher at 14 paise per minute. TRAI wants to bring IUC to zero from January 1, 2020.
  
  
• TRAI is ending IUC because it was assumed all networks would move to VoLTE, or voice over LTE (Long Term Evolution). Jio is entirely a VoLTE network, but Vodafone and Airtel continue to offer their legacy 2G and 3G networks as well.