Jio to start charging for outgoing calls - here’s why
Jio has announced that they will charge 6 Paisa per minute on all outgoing calls made by Jio users to other users. Why the sudden change? Asiaville explains.
Jio announced that it will start charging 6 paisa/minute on all outgoing calls made by Jio users to other telecom users. In turn, Jio users will get an equivalent amount of mobile data.
Postpaid users will first be charged on outgoing calls and in return, mobile data will be added to their account, whereas prepaid users will have to buy vouchers of Rs 10, Rs 20, Rs 50, Rs 100, to make outgoing calls to other telecom users and to get the equivalent amount of data in return.
Jio users can continue to call other Jio users for free.
Why did Jio decide to charge?
2 years ago,TRAI (Telecom Regulatory Authority of India) brought down the IUC (Interconnect Usage Charge) from 14 paisa/minute to 6 paisa/minute, and also said that the IUC will be zero after December 31st 2019.
Jio had decided that it would bear the cost of the IUC until the end of the year. However, TRAI announced plans to revise the date, leaving the date of zero IUC uncertain.
Furthermore, whether IUC would ever in fact be zero at all, has also become uncertain now.
To counteract this, Jio has started charging their users for calls outside the network. This is a marked shift from the network’s USP.
What are IUCs?
Interconnect usage charge is a rate set by TRAI, paid by one telecom company to another. For example - suppose a Jio user makes a call to an Airtel user. Jio would have to pay Airtel 6 paisa per minute.
It doesn’t make sense in the long term for Jio to underwrite the cost of all calls leaving the network - it wouldn’t be sustainable for the company.
So rather than wait for an uncertain deadline, Jio has begun shifting this cost to consumers, at least until TRAI ensures that IUCs are at zero.