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Customers threaten to leave Jio to rival networks: Is the anger justified?

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Ashok Pandey
New Update
IUC regime comes to an end as Reliance Jio to make local voice calls free from today

Since Mukesh Ambani announced Reliance Jio, customers threaten and even moved from` its rival service providers to Jio, due to massive data offering and a promise to provide free calling to all networks. But yesterday, Jio broke its promise and announce 6 paise per minute charge to every call to other networks. And now users are quite angry with this move and threatening Jio, let have a look at some of the customers' view โ€“

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Ever since Jio announced its charges people are angry as it's broke its promise as well as now Jio is getting threats to face massive move from Jio to other networks. Without a doubt, Airtel, Vodafone, and BSNL are going to get the major benefit due to this, as many people are tweeting and asking to move to a particular service provider.

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How Competitors are reacting to this?

Airtel โ€“

Without blaming or naming, Airtel shared a statement to the Jio move, "One of our competitors has imposed a rate of 6 paise for all off-net calls made to other operators to cover the termination charge of IUC (Interconnect Usage Charge). They have gone on to suggest that TRAI has re-opened this issue".

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They said that โ€œon 19 September 2017, when TRAI reduced the IUC from 14 paise to 6 paise and proposed a move towards Bill and Keep (zero IUC rate) with effect from Jan 1, 2020, they had specifically mentioned the following...The authority, if deems it necessary may re-visit the afore mentioned scheme of termination charge applicable on Wireless to Wireless calls after one year from the implementation of the regulation."

"Clearly, this off-net charge being levied, therefore, is to force IUC to be brought down despite the heavy burden it puts in the receiving network. We are grateful that this very timely consultation paper to reassess IUC has been issued By TRAI," Airtel said.

Vodafone Idea โ€“

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Vodafone idea also reacted to this, โ€œThe announcement by one of the telecom service providers today to charge for calls made to other service providers to cover the termination charge of IUC is not only an action of undue haste but it also does not bring out the fact that interconnect is a settlement between operators and not a consumer pricing matter. In our view, its TRAIโ€™s call for a consultation on IUC keeping in mind the continuing asymmetry in traffic and in line with its earlier stated position on the matter,โ€ says Vodafone Idea in a statement shared with News18.

Why Reliance Jio decided to charge 6 paise?

Since the launch of Jio services, the company has paid INR 13,500 crore as NET IUC charges to other network service providers. As Reliance Jio made a promise to keep calling completely free, they bear these charges.

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But yesterday the company shared a press release making the announcement as well they explained that โ€œWhile the incumbent operators reduced voice tariffs for their 4G customers, they continued to charge exorbitant tariffs to their 35 โ€“ 40 crore 2G customers, and in fact increased the tariffs for voice calls to around Rs. 1.50/ minute. The price differential of free voice on the Jio network and exorbitantly high tariffs on 2G networks causes the 35 โ€“ 40 crore 2G customers of Airtel and Vodafone-Idea to give missed calls to Jio customers. Jio network receives 25 to 30 crore missed calls on a daily basis. This huge missed call phenomena converts the incoming calls to Jio into outgoing calls from Jio to other operators. The 25 to 30 crore missed calls per day should have resulted in 65 to 75 crore minutes of incoming traffic to Jio. Instead, the call back made by the Jio customers results in 65 to 75 crore minutes of outgoing traffic.โ€

From when Jio users can't make calls to other networks for free?

It has been implemented, and from today (10th Oct 2019) Jio users cant make free calls to other networks. Reliance has introduced an additional IUC top-up which will add balance to your account and every call charge will be deducted from this only.

Meaning, the regular recharges are still available and work as they were except the calls to other networks. If you want to make a call to Airtel, Vodafone, Idea or BSNL networks, then you need to first recharge with IUC top-up, without this top-up you won't be able to make calls to any other, however, Jio to Jio calls are still free.

How Jio is compensating this?

Jio understands that customers wonโ€™t be happy with this decision as they promised to keep it free for life. So, to compensate the same they have announced additional data with each top-up, details are mentioned below โ€“

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The fact is Jio is no longer completely free, users have to pay 6 paise for every call to other network, which is justified if we see the amount Reliance has paid for IUC. But yes without a doubt, they have broken the promise to anger is also justified. What do you say?

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