If you wondered wth is IUC. Take this example... Suppose a caller from say Airtel network ( A) calls uninor ( network B). A is supposed pay 0.20 paisa per minute as of now. This is called as the IUC. This is precisely why calls within the network ( in-net) calls are cheaper than off-net. TRAI plans to review the IUC and it certainly is tough one and hence TRAI has asked for 3 months of extension to provide it reccomendation.
Many countries like USA, Hongkong, Singapore follow BAK. BAK means "Bill and Keep". Essentially free service. The orginating network is not obliged to pay the terminating network. The smaller players will love this. As most of thier subscribers will make calls to other networks and they can pass-on the benefit to the subscribers
There are mutiple ways ( like LRIC, FAC, TSLRIC etc) of compting the charges in the Cost oriented model.Incumbent operators with the advantage of network deployed many years back, stand to gain in this model. And there is an angle based on symmetric or asymetric traffic between two operators. Add to this 1800 and 900 band. 900 band is about 3 times more effecient ( more coverage) and less cost of infra and maintenenace.
Which way will TRAI go? It is indeed a tough call with the lobby from the Bigplayers on one hand , together with the general fairness ( or lack of it) with BAK approach. In all probability India will not take the BAK route. This means TRAI could reccomend areduction in the IUC. May be 10 Paisa? That will be 30% of the IUC in 2008.
Irrespetcive of which way TRAI decides, the subscribers are sure to gain!
