Thursday, 17 May 2018

TRAI wants to remove IUC charge for SMS

Telecom Regulatory Authority of India or TRAI told that they want to remove IUC charges for SMS, or at least reduce the charges. This decision will make older telcos such as Airtel and Vodafone, as their revenues will take a dip.

Interconnection Usage Charge (IUC) :-

TRAI charges 2 paise as IUC charges for normal text messages,
and 5 paise for commercial SMS. This IUC is paid by the mobile network to the recipient mobile network. For example if a Jio user sends a text message to an Airtel user, then Jio will pay IUC charge to Airtel. TRAI wants to scrap this IUC, and unleash a new change.

TRAI sources said “There’s discussion to review the IUC on messages… it has not been changed for a long time and the industry situation has changed since then"

As per latest numbers, an average GSM user is sending 16 SMS per month, while a CDMA user is sending just 2 SMS per month. Commercial SMS usage is relatively high, compared to normal messages, and if IUC is scrapped, or reduced, then this can trigger a new wave of protests from older telcos.

We will keep you updated, as we receive more information on the SMS usage and IUC charges.

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