Chairman of Bharti Airtel, Sunil Bharti Mittal, has requested the telecom regulator to decline the supposed BAK (bill and keep) rule and carry on to permit carriers to tax IUC (Interconnect Usage Charge) as per universal practice. Bharti Airtel is the largest telecom company in India.
Below BAK, such taxes are not paid or levied since they are supposed to get terminated out. IUC is a tax paid by network of the operator, from where a call arrives, to the telecom company, where the call concludes.
In an uncommon letter to TRAI (Telecom Regulatory Authority of India), Mittal claimed that IUC, which was well under price at 14 Paise each minute, had no connection to tariffs taxed on users. The fact that TRAI was not discussing IUC for global calls backed the argument that it was a lawful tax, he said to the media in an interview.
“While at talks, based on both misinformation and information, I feel it essential to add my thoughts in the hope for a reasonable and fair result of the present process of IUC,” claimed Mittal to the media. Mittal is the chairman and founder of Bharti Enterprises. Bharti Enterprises has concerns in insurance and real estate, telecom, and others.
“IUC has no connection to user tariff. Users taking pleasure of affordable and free calls is an indication that the present IUC rule is not coming in the way of reasonably priced tax,” Mittal further added to the media. He also said that these taxes are the reason behind the continuous investments in networks.
TRAI had subjected a consultation document on the tax almost 1 Year before and will shortly give its suggestions.
“In the present talks going on IUC in India, what shocks me the most is, nobody has even discussed about IUC for global calls settlement. The TRAI is not even talking this problem. Hence, this confirms the acceptance of authority to the standard that IUC is certainly an established international practice built on equitable and fair settlements for work carried out by each operator,” Mittal claimed to the regulator in the letter that was seen by the media.