Telecom Regulator Authority of India (TRAI), Interconnection Usage Charge

TRAI: Telecom Regulator Authority of India

TRAI is the independent regulator of the telecommunications business in India.
TRAI was established in 1997 by an Act of Parliament (a statutory body) to regulate telecom services & tariffs in India.
Earlier regulation of telecom services & tariffs was overseen by the Central Government.
TRAI’s mission is to create & nurture conditions for the growth of telecommunications in India to enable the country to have a leading role in the emerging global information society.
One of its main objectives is to provide a fair & transparent environment that promotes a level playing field & facilitates fair competition in the market.
TRAI regularly issues orders & directions on various subjects such as tariffs, interconnections, quality of service, Direct to Home (DTH) services & mobile number portability.

Context: Telecom operators not to pay interconnect usage charge from 1st January.
IUC is a charge payable by a service provider, whose subscriber originates the call, to the service provider in whose network the call terminates.
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.
IUC is one of the main sources of income for telecom companies.
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.
The term ‘interconnection’ refers to an arrangement under which telecom players connect their equipment, networks, & services with other Telecom Services Providers.
TRAI regulates the IUC & addresses the various issues related to interconnection arrangements.
IUC ensures operators make appropriate investments to carry voice calls without terminations.