Trai cut IUC in a 'non-transparent' way, move to benefit Jio - Airtel

MUMBAI: Market leader Bharti Airtel said it was it was "extremely disappointed" with the slash in interconnect usage rates which will benefit only newcomer Reliance Jio.

"We are extremely disappointed with the latest regulation on the IUC, especially at a time when the industry is facing severe financial stress. The suggested IUC rate, which has been arrived at in a completely non-transparent fashion, benefits only one operator which enjoys a huge traffic asymmetry in its favor, " said the company in a statement Wednesday.

The interconnectivity user charges was slashed by the telecom regulator to 6 paise a minute from the current 14 paise and the regulator said it would be brought down to zero paise from 2020.

" The sharp drop in the IUC rate will only help transfer part of its cost to other operators, thereby further worsening the financial health of the industry. As part of an industry, which continues to be a critical driving force behind the economic growth in the country, we are genuinely dismayed by this decision, " the company added.

The incumbents had asked for an increase in it and only Jio wanted the rates dropped.

Vodafone in a statement on Tuesday night said this was a 'retrograde' decision which will impact the sector especially in the rural coverage.