This is to recover the interconnect usage charge (IUC) applicable on calls made to other networks, also known as off-net calls. Not surprisingly, shares of Bharti Airtel and Vodafone Idea are up 10% and 20% respectively in the past two trading sessions. The incumbents are net receivers of the IUC charge, while Jio has a quarterly outgo of about Rs800 crore on this count. Indeed, the additional charge for off-net calls will incentivise existing Jio users to bring friends and family on to the Jio network. For a precariously placed company such as Vodafone Idea, net IUC receipts accounted for about 30% of Ebitda in Q1.

Source: Mint October 10, 2019 06:45 UTC