Airtel Finally Revealed The Revenue It Lost This Quarter Just Because of Reliance JIO

AP2TG Staff

The miracles that Reliance JIO has made so far are completely beyond the expectations of common people. With its very advent into Tele communications sector, offering free Internet and calls, JIO has proved its best. It has almost been a year now, JIO has lifted the bars so high that its rivals could never breach the same at any cost.

Repudiating the very restrictions its rivals tried to impose, JIO fought fair with the TRAI and sustained in the mobile network market, now has an iron fist in the same.

Airtel being the pioneer of the Internet in India has suffered severe losses with the entry of JIO. Incurring unbearable losses, Airtel and other networks managed to hold back its customers by reducing the Internet and call charges deliberately.

Official sources from the Airtel claimed that they suffered approximately Rs 550 crore loss in the current quarter due to ‘tsunami of calls’ that originated from the network of the new entrant. The Sunil Bharti Mittal-led firm said Jio’s demand to end mobile termination charges (MTC) is a “sinister design” to “continue with its strategy of predatory pricing and ultimately throttle all competition”.

In a bid to deliver the precise statistics, Airtel headquarters from New Delhi has said: “The allegations made by Reliance Jio regarding Airtel earning excess revenue from MTC are not only false but laughable.

They then added: Telecom Regulatory Authority of India (TRAI) mandated MTC of 14 paise, which is less than the cost of producing a call minute, which is currently at 35 paise.

“…the tsunami of calls originating from Reliance Jio’s network, Airtel loses 21 paise for every minute that is carried on its network. This has resulted in a loss of Rs 550 crore per quarter for Airtel alone.”

On the other hand, Jio in its presentation before TRAI has said that ‘number one’ operator, hinting at Airtel, has made an excess of Rs 73,000 crore from Interconnection Usage Charges (IUC). In addition to that, a Jio official at an open house discussion reiterated that telecom operators have benefited to the tune of over Rs 1 lakh crore after the sector regulator allowed continuation of IUC for voice calls.

Ravi Gandhi, Bharti Airtel’s Chief Regulatory Officer has said, “In effect, Reliance Jio aims to build its business by getting a free ride on the highways built by Airtel and other operators. Their proposal to move to bill and keep will further burden other operators and make them weak… The question to ask does India want a monopoly situation in telecom?”

“Proposing a transition to the ‘Bill and Keep’ regime with zero ‘mobile termination charges’, Jio wants to simply transfer its cost to Airtel and other operators” added Ravi Gandhi. On the whole, this would be over Rs 20,000 crore per year and will increase with time respectively.