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1
Q

Consider the following statements regarding Interconnect usage charge (IUC)

It is paid by oneoperator to another, when its customers make outgoing mobile calls to the otheroperator’s customers.
IUC charges arefixed by the private operators based on the nature of the call.
Which of the statements given above is/are correct?

A

nterconnect usage charge (IUC) is related to telecom sector. IUC is paid by one operator to another, when its customers make outgoing mobile calls to the other operator’s customers. These calls are known as mobile off-net calls.

The term ‘interconnection’ refers to an arrangement under which telecom players connect their equipment, networks and services with other Telecom Services Providers. The regulator, TRAI, addresses the various issues related to interconnection arrangements. It also regulates the IUC.

This is a charge payable by a service provider, whose subscriber originates the call, to the service provider in whose network the call terminates. In a calling-party pays regime (CPP), if you originate a call, you pay your access provider, who in turn pays termination charges to the network you placed the call.

This is paid to cover the network usage costs as the operator, on whose network the call terminates, carries the call on its network to the customers. This requires infrastructure investment. Thus, IUC ensures operators make appropriate investments to carry voice calls without terminations.

IUC charges are fixed by the Telecom Regulatory Authority of India (TRAI)

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