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Why You Must Now Pay for Jio Voice Calls?

IndianMoney.com Research Team | Posted On Friday, October 11,2019, 06:06 PM

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Why You Must Now Pay for Jio Voice Calls?

 

 

Leading telecom company reliance jio announced that the customers will have to pay a charge for connecting to users of other network operators via voice call. The company made the announcement on Wednesday 9th October stating that Jio network is compelled to charge its 350 million users to compensate for the 6paisa/ minute charges it pays to other telecom users as interconnect usage charges. It further promises that the customers will be compensated by extra data on recharges to ensure no tariff increase. Moreover calls from Jio to Jio, Jio to landline and voice calls made from other apps will be free of cost.

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Why You Must Now Pay for Jio Voice Calls?

According to experts this change in strategy may lead to a traffic rise to other telecom companies after a tough competition. This move may help jio network gain more customer or may lead to losing their existing customer base. The company also stated that the customers will have to bear these charges until TRAI make changes to bring the fee to zero, which is expected to commence from 1st January 2020 onwards.

Charges will also be levied on jio’s post-paid customers at the same rate for voice calls. They will also receive compensation in the form of free data. Pre-paid customers will need to recharge with IUC top-up plans to make the calls at the proposed price. The vouches come will additional data to compensate customers and remain competitive with the other telecom operators.

The new guidelines have come into effect from Wednesday, 9th October 2019 onwards. Customers who have recharged on or before 9th October will continue to get the same benefits till the plan continues.

Here is a list of how these changes are going to affect you if you are a jio customer:

  • Under the new guideline, the jio customers will have to pay a fee for connecting to subscribers of other operators. The charges are capped at 6 paise per minute for connection with Airtel, Vodafone and idea subscribers. Customers have to recharge a top-up voucher to make calls at this price.
  • The company promises to charge customers only for connecting to users of other telecom networks. Calls connecting customers from jio to jio network, incoming calls, jio to landline calls and calls made through apps like what’s app or IMO will be free of cost.
  • The company also announced some new IUC plans will come with data benefits to ensure that the customers are compensated. The plans are as follows:
  1. Rs. 10 plan gives 124 IUC minutes to non-jio subscribers along with 1 GB data
  2. Rs. 20 plan gives 249 IUC minutes to non-jio subscribers along with 2 GB data
  3. Rs. 50 plan offers 659 IUC minutes to non-jio subscribers and comes with 5 GB data
  4. Rs. 100 plan provides 1362 IUC minutes to non-jio subscribers along with 10 GB data
  • Jio says that it has been hit by the price difference of voice calls. The free voice calls on jio network lead to 30 to 40 crore missed calls from the users of rival networks. The outgoing calls from jio customers have resulted in a loss of Rs. 13500 crore that jio network has paid to the rival companies in the form of IUC charges in the last three years.
  • The benefit of free calls will hence be available only for jio to jio users. To recover losses the company has decided to levy charges to customers for each call they make to subscribers of other networks.
  • According to analyst Chris Lane, The move is a big deal as the other telecom operators have been waiting for Jio’s move from being a market capturer to focussing on profitable growth.
  • Analysts also say that this move will bring an end to the tariff war and will enable the jio competitors to take advantage of the situation and hike voice call rates. They can now recover their revenue that was mainly hurt by the launch of Jio India.

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