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IUC cut ignores spectrum cost: Idea Cellular

Trai had cut IUC - paid by an operator on whose network the call terminates - by 57% from 14 paise per minute

A man walks past a shop displaying Idea Cellular Ltd's logo on its shutters in Mumbai
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A man walks past a shop displaying Idea Cellular Ltd's logo on its shutters in Mumbai

Romita MajumdarRam Prasad Sahu Mumbai
The Telecom Regulatory Authority of India’s (Trai’s) decision to cut interconnection usage charges (IUC) to 6 paise per minute ignores the high cost of spectrum borne by telecom operators, said Idea Cellular in a statement on Thursday. 

On Tuesday, Trai had cut IUC — paid by an operator on whose network the call terminates — by 57 per cent from 14 paise per minute. The new rate is effective from October 1. Incumbent operators are upset with the Trai for using a new method to calculate long-run incremental cost (LRIC), which determines the price to be paid by competitors for