Operators say rural telecom to suffer at nil IUC, Jio differs

July 20, 2017

New Delhi, Jul 20: The warring parties over interconnect usage charges are digging in their heels.IUC

Established operators such as Bharti Airtel and Vodafone on Thursday contended that telecom infrastructure in rural areas largely depends on revenue from incoming calls, and lowering or removal of such charges will hamper services.

The new entrant, Reliance Jio, brushed aside the logic, claiming that it will provide 99 percent coverage by the end of this year even if mobile interconnection charges are dropped.

"Poor people in the country are subsidising inefficient network of telecom operators. There is very less cost of carrying calls on 4G network, but still incumbent operators are making people in rural areas use 2G network. We will install network in the village very next day if any operator wants to leave a village," a Jio representative said on IUC at Trai's open house discussion today.

Trai in an affidavit filed before the Supreme Court in 2011 had said telecom operators should be given time till 2014 to move to the bill and keep regime. Under this, operators only keep record of incoming calls on their network, but do not raise any demand from other operators.

The official held that continuation of IUC beyond 2014 has resulted in incumbent operators benefiting to the tune of Rs 1 lakh crore.

Telecom operators levy interconnect usage charge (IUC) on incoming calls from the network of the other operator. These charges are passed on to subscribers by service providers.

"IUC in rural area is not for subsidy, but to recover charges because terminating operators (on which a call is made) cannot charge for incoming calls," a Bharti Airtel representative said.

He made the point that IUC is not meant for availing gains, but a way of recovering cost.

"Going by the growth rate, if the subscriber base of a new operator goes up to 400 million, it will push the cost burden of Rs 2 lakh crore on the industry," the Airtel representative said. "Airtel's 4G rollout is at par with that of Jio and the new entrant should not give the impression that they are the only saviour of data services in the country."

The reasoning the official gave was that when a customer makes a call to a different network, he authorises his service provider to pay IUC to the operator on whose network the call has been made.

Vodafone said the Telecom Regulatory Authority of India (Trai) in its report has mentioned that there are a number of incoming calls made in rural areas compared to outgoing calls and IUC provides revenue to support telecom infrastructure at such locations.

"We have our 54 percent of sites (mobile towers) in rural areas. One can say it is very easy to put a site next day, but we know how much hard work we have done," the Vodafone official added.

Another representative from Vodafone felt that maintenance of rural network should not be jeopardised by removal of IUC.

Idea Cellular, which is batting for a higher IUC, on its part, argued that the industry is under financial stress and needs reason to support future investment.

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Agencies
February 29,2020

Ahmedabad, Feb 29: The presence of two feral pigeons onboard a GoAir flight at the airport in Ahmedabad in Gujarat created a flutter among the amused passengers, even though the avian surprise did not lead to any untoward incident or delay in the flight.

The incident took place on Friday when the passengers were boarding the Ahmedabad-Jaipur flight.

"Two pigeons had found their way inside the flight G8 702 while the passengers were boarding," an airline statement said on Saturday.

"The crew immediately shooed away the birds. The flight took off at its scheduled time at 5 p.m.," it added.

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Agencies
March 12,2020

Thiruvananthapuram, Mar 12: In the wake of COVID-19 outbreak, Internet service providers in Kerala have agreed to step up the network capacity by 30 to 40 per cent of the present capacity to meet the demand, especially in view of the spurt in work-at-home mode.

"The decision was made at a meeting of representatives of various telecom service providers in Kerala circle and officials of the Telecommunication Department convened by the Secretary, Electronics and IT, following a direction by Chief Minister Pinarayi Vijayan to look into the issue," said a press release by the IT Department.

The decision will be beneficial for those working in IT institutions. The government has come out with a set of suggestions to avoid social gatherings at public places in view of coronavirus spread. Telecom service providers have assured the government that they are well equipped to face the current situation.

The major part of Internet consumption in Kerala is made available through local servers. Moreover, global Internet traffic is very low as compared to the overall consumption. So, increasing the capacity won't be difficult, service providers informed.

"Complaints regarding the low availability of the Internet due to the spurt in consumption of the Internet can be made to the service providers to their complaint redressal number or inform state government call centre (155300). But complaints regarding the insufficiency in the current network infrastructure should be strictly avoided," said the release.

The IT Department will also demand daily reports from various telecom service providers. By analysing these reports, steps for remedies will be taken after bringing the sudden increase in consumption to the service providers.

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Agencies
July 19,2020

New Delhi, Jul 19: Three of the 10 most valued companies added a total of Rs 98,622.89 crore to their market valuation last week, led by stellar gains in IT major Infosys.

Seven companies from the coveted list witnessed a decline in their market valuation last week, but their cumulative loss of Rs 37,701.1 crore was less than the total gain made by three firms -- Reliance Industries Limited, Hindustan Unilever Limited and Infosys.

The market capitalisation of Infosys zoomed Rs 52,046.87 crore to Rs 3,85,027.58 crore. Shares of Infosys had rallied over 9 per cent on Thursday after the company posted a stronger-than-expected 12.4 per cent rise in the first quarter consolidated net profit.

Hindustan Unilever Limited added Rs 25,751.07 crore in its market valuation which stood at Rs 5,48,232.26 crore at close on Friday. Reliance Industries' m-cap jumped Rs 20,824.95 crore to Rs 12,11,682.08 crore.

In contrast, HDFC's valuation plunged Rs 13,920.21 crore to Rs 3,13,269.70 crore and that of Tata Consultancy Services (TCS) declined Rs 7,617.34 crore to Rs 8,26,031.21 crore.

The valuation of ICICI Bank tumbled Rs 4,205.71 crore to Rs 2,29,156.24 crore and that of Kotak Mahindra Bank by Rs 4,175.28 crore to Rs 2,62,864.37 crore.

Bharti Airtel's m-cap dipped Rs 4,009.83 crore to Rs 3,09,521.05 crore and HDFC Bank's by Rs 3,403.97 crore to Rs 6,03,463.97 crore.

The valuation of ITC declined by Rs 368.76 crore to Rs 2,38,469.29 crore.

In the ranking of top-10 firms, RIL was at the number one rank followed by TCS, HDFC Bank, HUL, Infosys, HDFC, Bharti Airtel, Kotak Mahindra Bank, ITC and ICICI Bank.

During the last week, the 30-share BSE index advanced 425.81 points or 1.16 per cent.

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