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Jio's decision on IUC positive for industry, say analysts
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Mumbai, Oct. 10 -- Reliance Jio Infocomm's (RJio) decision to pass on the interconnect usage charge (IUC) for off-net calls (calls to other networks) to its subscribers may enable other operators to raise tariffs too, say analysts.
For RJio, this move is expected to drive up revenue by 5%, which would translate into a 10% increase in operating profit, according to Edelweiss Securities Ltd.
"This works out to a price hike of about 14%. However, we believe that additional charges for off-net calls would disincentivise users to call other operators, which would reduce off-net call volumes for RJio," said Edelweiss Securities Ltd in a note published on 9 October.
Analysts believe the tariff hike is positive for the telecom industry and wil...
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