IUC regime comes to an end as Reliance Jio to make local voice calls free from today

Reliance Jio has announced that it would once again make all voice calls free on its network from today. The fresh decision comes as a result of the ‘Bill and Keep' regime that the Telecom Regulatory Authority of India (TRAI) is implementing in the country from January 1. This will end interconnect usage charges (IUC) for all domestic voice calls.

Earlier, Reliance Jio had started charging its subscribers 6 paise a minute to make voice calls to other mobile networks. But on-net domestic voice calls have always been free on the Jio network. However, in September 2019, TRAI extended the timeline for implementation of the Bill and Keep (BAK) regime beyond 1 January 2020, Thus, Reliance Jio had to start charging its customers for off-net (that is, non-Jio) voice calls.

What is IUC?

IUC refers to Interconnect Usage Charges. TRAI introduced the system of IUC or termination charges on voice calls in 2004. According to it, a charge applied to all network under the calling-party-pays system; that is you pay when you call. These charges, initially, 30 paise per minute applied on all types of calls and irrespective of the distance. The charges were revised downwards to 20 paise per minute in 2008-09, and subsequently to 14 paise per minute for mobile-to-mobile calls and 0 paise for other call types (mobile-to-landline, landline-to-mobile, landline-to-landline).

Airtel and Vodafone Idea, both were against the idea of the abolition of IUC charges. They said that until the traffic between telecom operators reaches symmetry, the charges should be there. The symmetry meant that incoming calls should nearly be equal to outgoing calls between each telco. They further argued that it would have been unfair because of the kind of investments they have made over the years on network infrastructure and customer acquisition.

But things have changed pretty dramatically over the past year.

What happens now for Reliance Jio users?

Well now, Reliance Jio users will be able to make free voice calls to any mobile network in the country. In a comment, the company says,  “Today, Jio has delivered on that promise and made off-net voice calls free again. Jio stands firm on its commitment to making the common Indian the beneficiary of advanced technologies like VoLTE. We are committed to lay the foundation of a digital society – a society where everything, everyone, everywhere is connected with the best quality service, at the lowest price globally, and has access to the most advanced digital platforms. Through technological innovation, Jio will continue to deliver revolutionary products and services to its users, with a CUSTOMER-FIRST approach.”