India’s largest Infocomm giant Jio has announced on 9th of Oct 2019 that compelled by interconnect Usage Charge (IUC) also known as Jio IUC Plans where all jio users need to pay to other rival telecoms such as Airtel, Vodafone, Idea and in order to compensate those expenses; Jio Users have to pay 6 paise/minute calling charges to non jio calls but also promised that this will be compensated to its user by providing them the relevant amount of data. On the other hand calling and interaction over the same network of Jio (Jio to Jio), to landlines and those made over the apps such as WhatsApp is going remain the same (free) as usual.
All Jio Customers who want to make a voice call over other networks such as Vodafone, Airtel or Idea will now have to buy an additional Top-Up vouchers that are decided as Rs.10, 20, 50 and 100 for additional IUC minutes not only that as promised by Reliance Jio founder Mukesh Ambani the amount of data is associated with the recharge is 1GB for 10, 2 GB for 20, 5 GB for 50 and 10GB for 100 respectively.
|IUC Top-Up Voucher Amount (Rs)||IUC Minutes (Non-Jio Mobiles)||Free Data Entitlement (GB)|
What is INTERCONNECT USAGE CHARGE (IUC)
IUC is a fee that is paid by one Telcom company to another when a call from the former’s network lands onto the other one. The charge is levied on a ‘Per minute’ basis.
While the call between the two different networks is known to be with the name mobile off-net calls as defined by Telecom Regulatory Authority of India (TRAI). Now IUC charge is fixed as 6 paise/minute by TRAI.
Two years ago the sector regulatory had brought this IUC amount from 14 paise per minute to 6 paise per minute and even decided to scrap the change from January 2020. In the present scenario, Jio is the net payer of IUC while Airtel, Vodafone, and Idea are the net revenue generator that is directly based on voice traffic flows patterns.
In the last 3 years, JIO has paid nearly 13,500 crores as a net IUC charge to the other operators. Recently the interconnect cost of jio net stood around the round figure of roughly Rs. 851 Crore in the June months this year.
What is the Point of Interconnection in Telecom?
In Telecom, a Point of Interconnection (POI) is used to connect physical interfaces between two different telecom operators. This parameter also shows how effective the relationship between the two networks is.
Why an Interconnect is Required?
This eliminates the need for a customer to subscribe to multiple networks to be able to communicate with all other customers. Major carriers may hinder or end competition by delaying interconnection, degrading the quality of interconnection, or charging higher prices for interconnection.
Can I Upgrade my Jio Plan?
Reliance Jio is an upgrade from the original Rs 149 recharge plan. Under the new Rs 149 plan, Jio is offering 2GB 4G internet data, unlimited voice calls, 300 SMS and mobile app access. As per the earlier Jio’s Rs 149 tariff plan, no data was available after the FUP limit was exceeded.
Is Incoming Free on Jio Without a Recharge?
If you do not recharge with a data plan, the incoming call will be free for a fixed period: 3 months. After this specified period your SIM will be deactivated as per TRAI rules. In short, you should recharge your SIM with any data plan, even if you are a key member to enjoy the service for one year.
What is Base Plan Validity in Jio?
Jio’s booster pack is now priced at Rs 11, Rs 21, Rs 51 and Rs 101 providing additional data up to 6 GB, which can be used during the entire validity period of the user’s existing / Aadhaar plan. With these packs, users can continue to access data at 4G speeds even beyond the limit.
Can we Activate Two Plans in Jio?
Yes, you can use 2 or more plans simultaneously with Jio, after recharge, you only have to activate both plans at the same time in the MyJio app.
GetUpdateDaily Personal Analysis Over this New Jio IUC Plans
Now after the announcement of this new Charge named IUC charge by jio ultimately user is going to suffer at the end because by now most of the calling used to be done from jio to the other network due to the reason that JIO promised to provide free voice calling irrespective of any network at the time of its launch.
While now onwards you will have to recharge for the extra amount when you want to call to the other network and that means the amount of 6 paise/ minute now the user has to bear which jio used to pay to the other network and it is up to when the TRAI completely removes this charge.
So by now you might have understood whether it is going to benefit you or not by calculating the amount as mentioned you above because if you are a person who uses mobile and talks over another network for even at least 2 hrs (120 mint.) a day then it is directly 300/- a month except for the regular basic charge which you do by now to enjoy the data and voice calling of JIO.
For example by now if you are a regular customer as make a recharge of 149/- a month for 1.5GB data and voice calling for free overall network, now onwards you will have to pay 450/- a month for the same plan if you daily calling is minimum 2 hrs on other network than on Jio.
10/- Rs = 124 minutes. (approx. 2Hrs.)
149/– Rs. Regular Plan
If 2 Hrs. a day spent over another network that means 10/- Rs. a Day extra recharge
10*30 = 300/-
Now Regular Recharge + IUC Recharge
149 + 300 = 450/– for the same service.
Similarly, you can calculate with the other plan and also for the Hrs. you usually spend on another network for a day.
Ultimately you will have to pay the extra charges which fall to be costly in case of jio.
As per the current announcement by jio it seems that the business is going to affect since maximum users used to use the jio because it promised to provide the free calling over any network but now it turns to be costly as per the new announcement now.
There on the other hand where airtel and Vodafone and even the Idea that has been in the market for a long time and compete Jio direct by their plan probably going to see a hike in their business after this announcement.
What are you take and point of you over this announcement and how do you think it is going to affect JIO business, you can simply mention it in the comment section below. And if you have any suggestions or opinion you can further choose the remark section below.