"The price differential of free voice on Jio network and exorbitantly high tariffs on 2G networks causes the 35 - 40 crore 2G customers of Airtel and Vodafone-Idea to give missed calls to Jio customers".
Therefore, in light of the regulatory uncertainty, RJio has made a decision to recover IUC cost from its customers.
Jio is insisting it's just as much of a victim in this situation and is only introducing the charge because the Indian telecoms regulator - TRAI - is mucking it about over plans to scrap the IUC entirely next year.
Since voice calls on Jio network are free, the company had to bear the Rs 13,500-crore payment made to rivals such as Bharti Airtel and Vodafone Idea.
This is to compensate for interconnecting user charges (IUC) which are incurred each time an operator initiates a connection with another operator for a call. "Presently, this date is 1st January 2020", Jio said in a statement. The company today said that it will now start charging for outgoing calls.
Reliance Jio, in an official announcement, says that it had subsidized the IUC charge for users and has been paying it themselves (having paid more than 13,000 crores over the past two years), but is now abolishing this practice for one reason and that's TRAI.
Reliance Jio has started charging subscribers six paise a minute for making calls to other mobile networks.
These charges are not applicable on calls made by Jio users to other Jio phones and to landline phones and calls made using WhatsApp, FaceTime and other such platforms.
Shares of Bharti Airtel and Vodafone Idea Ltd ended 5-6% higher while Reliance Industries Ltd (RIL) was up almost 3% on Thursday.
"In the meanwhile, consumers can continue to enjoy the additional data entitlement in lieu of the IUC top-up vouchers so that there is no effective tariff increase till 31st December 31, 2019", Jio said.
Now, that we have clarified the concept around IUC and how Jio is now going to charge users to offset the losses, well, let's take a look at top-up vouchers it's offering users. Jio claims that the consultation paper has created Regulatory uncertainty, thus compelling Jio to recover the regulatory charge of 6 paise per minute from customers. However, it floated a consultation paper to review whether the regime timeline needs to be extended.
-Rs 50 plan will offer 656 minutes of IUC minutes to non-Jio numbers and 5GB data.
The cheapest Rs 10 voucher offers 124 minutes of outgoing voice calls to other networks and 1GB of data The Rs 20 voucher provides users with 249 minutes of off-net outgoing calls and 2GB data.