Reliance Jio responds to TRAI's IUC review, says it's 'unwarranted and anti-poor'

The Telecom Regulatory Authority of India's (TRAI) consultation paper on 'Review of Interconnection Usage Charges (IUC)' is out, and Reliance Jio believe that it sabotages the Digital India and Ease of Living initiatives by the ruling government.

Reliance Jio believes that the implementation of the new Bill and Keep (BAK) regime is "not only arbitrary, bad in law, unwarranted, and anti-poor, but it also adversely affects the credibility of the Authority and investor's confidence".

TRAI recently moved to reopen the deadline for ending charges for terminating calls on rival networks beyond January 2020, which forced Reliance Jio to levy a 6 paisa per minute charge on its users, effectively ending its free call regime.

The comments on the review paper also state that it sabotages Prime Minister Narendra Modi's Digital India mission and the Ease of Living initiative.

Representational Image. Credit: Reuters

Jio believes that TRAI's suggestions protect and perpetuate "the vested interests of certain incumbent telecom operators who do want their large body of 2G customers to forever remain digitally disempowered and deprived of the fruits of Digital Revolution".

(Also read: TRAI's review of IUC will harm subscribers and reward defaulters says Reliance Jio)

Jio says that there are currently 476 million people in the country who are still using the 2G infrastructure and they are being excluded from the government's promise of "digital infrastructure as a utility to every person" as part of its Digital India initiative, by denying them the fundamental piece of this mission, which is the Internet.

Further, the commentary adds that by refusing to end 2G services and an upgrade to 4G, some telecom operators in the country are exploiting millions of customers by charging them high rates for voice calls, which Jio offers for free to all its 4G-only customers.

(Also read: Presence of interconnect charges give telcos little incentive to upgrade their networks and improve customer service)

It is unfortunate that instead of profiting the poor and marginalised sections of Indian society, the consultation paper has chosen to help profiteers in the telecom business, Jio alleged. The discussion paper wants India to remain technologically stagnant and backward, the company said.

Jio also says that The move contradicts the authority’s past decisions where it was represented that the zero termination charge regime would come into effect for all types of calls from January 1, 2020. “…the present Consultation Paper has not been issued to address traffic asymmetry, but to address the claimed financial stress of one or two operators at the cost of the interests of the subscribers and the telecom sector, and also the credibility of the authority,” it said.

(Also read: Jio interconnect usage charges top-up pack start from Rs 10: Here's all you need to know)

Additionally, Jio submits that the present consultation process has been initiated with a pre-determined mind without considering all relevant factors and details pertaining to the termination of the IUC charges.

It says that the Authority itself decided in IUC Regulation 2017 that "only by removing cost-based IUC, the vicious circle of 'cost-based IUC till there is traffic symmetry' can be broke". Which is why Jio believes that the appropriate time for BAK regime scheduled for 1 January 2020 cannot be interfered with.

(Also read: In present anti-business climate, policy flip-flops like IUC rules change aren't ideal prescription)

"These factors lead to a conclusion that the present consultation paper has not been issued to address traffic asymmetry, but to address the claimed financial stress of one or two operators at the cost of the interests of the subscribers and the telecom sector, and also the credibility of the Authority."

"This consideration for deferral of the BAK regime would be against public interest and bad in law. It is also worthwhile to submit that the present trend indicates that traffic asymmetry is expected to be reversed in a few months and the present receivers are expected to become payers, hence, deferring the implementation of the BAK regime is not going to steer any operator away from the purported financial stress," Jio concludes.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost

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