Zero Interconnection Usage Charges (IUC)

Zero Interconnection Usage Charges (IUC)

Context:

From January 1 onwards, the termination charge for wireless to wireless domestic calls has become zero .Until now operators paid Interconnection Usage Charges (IUC) of 6 paise per minute on mobile calls.

Concept:

IUC is the cost that a mobile operator pays to another operator for carrying through/ terminating a call. If a customer of Mobile Operator A calls a customer of Mobile Operator B and the call is completed, then A pays an IUC charge to B for carrying/facilitating the call. Essentially, it is the originating network compensating the receiving network for cost of carrying the call. In India IUC is set by the TRAI