India's second largest telecom operator Vodafone expressed its disappointment at TRAI decision to slash the interconnection usage charges (IUC) to 6 paise per minute from 14 paise.

"We are disappointed with this decision and are now considering our options in response to it. The Indian telecoms industry is already experiencing the greatest period of financial stress in its history," Vodafone said in a statement.
The company said that "This is yet another retrograde regulatory measure that will significantly benefit the new entrant alone while adversely affecting the rest of the industry as a whole. Unless mitigated, this decision will have serious consequences for investment in rural coverage, undermining the Government's vision of Digital India."
The comments come in response to the Telecom Regulatory Authority of India decision on reducing from 14 paise per minute to 6 paise per minute w.e.f. 1st October 2017 and for other types of calls (such as wireline to mobile, wire-line to wireline and wire-line to mobile) the termination charge would continue to remain zero.
Trai further said that there would be no call termination charges applicable from 1 January 2020.
The IUC rates have been the biggest issue between incumbents telcos and Reliance Jio.
"On the basis of comments received from stakeholders, in writing or during the open house discussion or during the workshop, the Authority has prescribed revised domestic mobile termination charges through these regulations," Trai said in the statement.
To recall, incumbents have demanded to increase the IUC rates to 28- 35 paise per minute from the present level of 14 paise a minute.
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