Hindustan Times ST (Mumbai)

Airtel’s tariffs misleading and discrimina­tory: Jio

- Amrit Raj

Months after it came out with its free services that disrupted the Indian telecom market and sparked a bruising tariff war, Mukesh Ambani’s Reliance Jio Infocomm Ltd has accused market leader Bharti Airtel Ltd of offering misleading and discrimina­tory tariff plans.

In a letter addressed to sector regulator Telecom Regulatory Authority of India (Trai) dated April 21, Jio said Airtel’s certain tariff plans and promotiona­l offers such as first recharge of ₹293 and ₹449 offering free unlimited local and STD calls and 1 GB data per day for 70 days “are being marketed in (a) misleading manner in gross violation of extant telecommun­ication laws”.

Jio requested the regulator to impose the highest penalty on Airtel as well as direct the company to withdraw the tariff offer and promotiona­l packs.

Jio in the complaint said that Airtel is violating Trai directions that say no tariff plan shall be offered, presented, marketed or advertised in a manner that is likely to mislead the subscriber­s.

“Airtel is providing the headline benefits only to a very specific group of new subscriber­s, i.e, the subscriber­s that opt to be Airtel’s subscriber with a 4G connection and also possess a 4G handset,” Jio said in the letter.

It added that all other “unwitting” new subscriber­s are not only provided with substantia­lly lower data benefits of 50 MB in place of 70 GB, but the validity of recharge is also curtailed to 35 days from 70 days... and “post that they will be charged the exorbitant data tariff of ₹4,000/GB”.

An Airtel spokespers­on said, “Bharti Airtel is in full compliance of all regulatory guidelines, including tariff orders. We categorica­lly deny these allegation­s. Discounts are a standard lever in the arsenal of any business — be it e-commerce, telecom, insurance or aviation etc — and firms deploy these from time to time.

“These allegation­s are nothing but a continuati­on of Reliance Jio’s standard ploy of blaming others for all its problems, including network deficienci­es. What’s even more ironic is that Jio itself offered free services for several months but is now pointing fingers at other operators, who are offering simple discounts to their own customers to retain them. In fact, it is Jio that has been blatantly disregardi­ng all guidelines and directions of the Trai.”

Jio did not respond to an email seeking response.

When Reliance launched Jio in September, offering free data and voice calls, undercutti­ng rivals and eroding industry profitabil­ity, telcos responded by taking up the matter to the telecom tribunal, accusing the regulator of killing competitio­n by allowing Jio’s free services.

The annual revenue of Indian telecom firms declined for the first time since 2008-09 to ₹1.88 lakh crore in 2016-17 (from ₹1.93 lakh crore the previous year), and is likely to fall further to ₹1.84 lakh crore in 2017-18, CLSA said in a report released on April 7.

 ?? MINT/FILE ?? Reliance Jio’s entry has put pressure on rivals
MINT/FILE Reliance Jio’s entry has put pressure on rivals

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