Interconnection Usage Charges – UPSC Prelims

  • Interconnection Usage Charges (IUC) is a charge paid by the Telecommunication service provider (TSP), whose subscriber makes a call, to the Telecommunication Service Provider, whose subscriber receives the call.
  • It is the cost that a mobile operator pays to another operator for carrying through/terminating a call.
  • Example : If a JIO user makes a call to a Airtel User, than Airtel will pay IUC to JIO.
  • In India, IUC is set by the Telecom Regulatory Authority of India.
  • Until now operators paid Interconnection Usage Charges (IUC) of 6 paise per minute on mobile calls.
  • Why in News? IUC has been terminated from 1st Jan 2021.
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