Thread by @TickertapeIN

Reliance Jio Infocomm Ltd. will now start charging customers for voice calls to recover interconnection usage charges. Users, however, will be compensated with free data of similar value

Let’s understand why?

#JioUsers

But first, What is IUC(Interconnect Usage Charge)?

It is the price paid by one mobile telecom operator to another when its customers make outgoing mobile calls to the other operator’s customers. It is currently set at 6 paise/ minute

#JioUsers #IUC

Jio has been hit with the missed-call wave because of free calls

It receives 25-30 crore missed calls daily and when Jio customers call these users back, instead of receiving 6 paise per minute from other network operators as an IUC, Jio eventually has to pay for callbacks

#Jio

Telecom operators with a large number of active subscribers gain from IUC as most of the calls are made within their network and they earn a good share of the revenue from incoming calls from other networks. #JioUsers #telecoms

Reliance Jio has paid around Rs 13,500 crore as net IUC to other operators since its launch

By introducing these charges, Reliance Jio is trying to pass on the gross IUC cost to consumers which may boost its earnings

#JioUsers