Interconnection Usage charges regime ended, telecom operators should focus on service quality

 Interconnection Usage Charge (IUC) is charge paid by a telecom operator to another on whose network subscriber's voice was completed.

Progressive step that removed the need to monitor call termination data and make IUC payments (6 Paise per minute since 2017). It should spur an expansion of high capacity networks, going beyond 2G and 3G.

Indian Telecom market is dense and poised for growth, yet as per Economic Survey 19-20, in Telecom sector, intense competition reduced no. of private players.

Telecom providers must focus on reliable call quality and competitive tariffs policy.

TRAI, now introduced Bill and Keep Arrangement.

Challenges for Telecom Sector

  1. Ensuring consumer welfare as well as keeping Telecoms remunerative.
  2. Badly prices spectrum, which could lead to auction failures
  3. lack of genuine competition and,
  4. providing cost effective quality services.


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