Author Topic: Interconnect Usage Charges Cut May Lead to Battle in Supreme Court  (Read 233 times)

wiredlife

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Interconnect Usage Charges Cut May Lead to Battle in Supreme Court
« on: September 09, 2016, 12:40:20 PM »
TRAI is in the midst of a consultation process to revise the IUC - Interconnect Usage Charges. TRAI has historically set IUC based on costs. The sharp jump in spectrum costs in recent years makes the case for an IUC cut harder. Incumbents might move to the Supreme Court if TRAI attempts this by virtue of  Corruption in the Central Government.

JIO has attempted disruption in the structure of plans, but largely stuck to the steady disinflation script on ARMB and has come in at a discount of 11-40% w.r.t. incumbents. This will create pressure on pricing.

JIO has made a very big attempt to spur up-trading and raise share-of-wallet is a major positive (for now, unless JIO cut the minimum pack size at a later date). Incumbents will be at a premium to JIO for some time, even in head-to-head plans, thanks to their superior distribution network and relationships.