Full formTechnology
IUCstands forInterconnect Usage Charge
Full Form of IUC
What is IUC?
Interconnect Usage Charge (IUC) is a fee paid by one telecom operator to another for using the latter's network to terminate a call. In India, the Telecom Regulatory Authority of India (TRAI) has historically set IUC rates to ensure fair compensation between operators for call completion. The charge was a key component of telecom pricing, affecting both prepaid and postpaid tariffs. It is most commonly referenced in regulatory filings, telecom billing discussions, and industry debates about network costs. Over time, TRAI progressively reduced IUC, eventually bringing it to zero in 2022 for all calls, adopting a 'Bill and Keep' regime. This move aimed to simplify operations, reduce consumer costs, and encourage investment in network infrastructure. Understanding IUC is essential for students of telecom regulation, business law, and commerce, as it appears in competitive exams such as UPSC, RBI Grade B, and NTPC. The concept illustrates how interconnection pricing shapes market dynamics and consumer welfare in one of the world's largest telecom markets.
IUC का फुल फॉर्म
इंटरकनेक्ट उपयोग शुल्क
Example
The Telecom Regulatory Authority of India has reduced the IUC for mobile calls from 6 paise per minute to zero, effective January 2022.
IUC — frequently asked questions
What is the full form of IUC?
Interconnect Usage Charge (IUC) is a fee paid by one telecom operator to another for terminating a call on the recipient's network.
Why was IUC reduced to zero in India?
TRAI phased out IUC to promote a 'Bill and Keep' regime, reducing operational complexities and lowering costs for consumers while encouraging network investment.
Who regulates IUC in India?
The Telecom Regulatory Authority of India (TRAI) sets and revises IUC rates, ensuring fair competition among operators.