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HomeNewsTelecom NewsTelcos will face Rs 5,000 crore losses while Jio will gain from 6 paise IUC: COAI
Thursday, 21 September 2017 08:24

Telcos will face Rs 5,000 crore losses while Jio will gain from 6 paise IUC: COAI

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The cellular operators association of India (COAI) has openly criticised the Telecom Regulatory Authority of India's (TRAI)’s decision to bring down call connect charges. It said that the established telecom players would take a hit of Rs 5,000 crore during the current fiscal year due to the decision.

COAI represents leading telcos Airtel, Vodafone and Idea. It added that TRAI’s decision had come at a time when the debt-ridden industry was under financial stress because of the high cost of spectrum. COAI director general Rajan Mathews added TRAI should explain the calculation model it had used to reduce the interconnection usage charge from 14 paise to 6 paise per minute.

Mathews further said that TRAI’s assumption that all operators should move towards the latest VoLTE technology is not practical as it will hit services for 2G users who account for 70 per cent of the total subscriber base in the country.

"Technology migration sounds good, but we have to look at practical dimensions of what happens in terms of incumbents. They don't have the same profile as Jio does. Jio can start with all 4G calls, but incumbents are forced to bear the cost of carrying their legacy," Mathews said.

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