About Interconnection Usage Charge (IUC)
- This is a charge payable by a service provider, whose subscriber makes a call, to the service provider (Airtel) in whose network the call is made. These calls between two different networks are known as mobile off-net calls.
- India follows a Calling Party Pays (CPP) (introduced in 2003) regime wherein the calling party who initiated the call was to bear the entire cost of the call
- For example: Assume that a Jio subscriber calls to an Airtel subscriber. In this case, Jio will pay IUC to Airtel.
Why is IUC paid?
IUC is paid to cover the network usage costs as the operator, on whose network the call is made, 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 is a major source of income for telecom companies.
