All consumers are excited fro Jio but still there are few people who aren’t happy from Jio they’re telecom operators such as Bharti Airtel. According to airtel “Jio has created the unfair competition in telecom industry”. Recently airtel Payments Bank, a joint venture between Bharti Airtel Ltd and Kotak Mahindra Bank Ltd, said it will spend Rs3,000 crore to develop a pan-India banking network and digital payments ecosystem. In an interview chairman of Bharti Airtel Sunil Mittal said on Thursday that Reliance Jio’s free offer is hitting the sector adversely and has created unfair competition in the market which his firm has challenged before court. He said that Airtel Payments Bank will have a network of 250,000 Airtel retail stores across 29 states are also included in it, which company said that have more than ATM’s in the country. Airtel Payments Bank will have 5 million merchants, of which 1 million have already joined it. The company also introduced an virtual card in collaboration with MasterCard for cashless payments on other merchants also. Airtel Payments Bank is trying to overcome Jio’s offer which is being provided by Jio from a long time and it has made a tremendous change in the telecom industry.
Reliance Jio has created unfair cometition: Sunil Mittal
Telecom Regulatory Authority of India (TRAI) in October 2016, suggested a penalty of Rs 3,050 crore on Bharti Airtel, Vodafone India and Idea Cellular for denying adequate connectivity to Reliance Jio to terminate calls on their own networks. Bharti Airtel was only one who charged 150 crore fine alone.
At first if we see that airtel always claims “free” words in their any of offer whether it’s paid or really free. Actually in such cases the customer needs to pay for that offer but in the advertisement airtel always claims that the offer is free but actually it’s not. Then how airtel can say for Jio that they are disrupting, when they are the ones to do it for marketing activities.
Secondly Jio is providing all services such as unlimited true 4g internet, free voice calls overall india, free text messages without earning any profits which is a big thing of it’s own. None of telecom operators have provided such offers at this price (free). The only person who earn profit from Jio is the customer itself.
A few months back when Jio was launched then Airtel and few other telecom operators had also approached TRAI that consumers were given the free data and free voice calls on Jio’s network for three months. However, at that time TRAI had said that the Jio data, until it doesn’t go beyond 90 days, was completely fair and fine.
What we see that many people are saying that Reliance is using government to earn profits but the real scenario behind this is completely different, in fact Bharti Airtel has faced a lot’s of loss due to Jio and the effects of demonetization where the Revenue is reduced. In a BAML report it is clearly mentioned that Airtel has the most loyal customers and had a 97.7% retention rate still why do they have to go after the extension offer.
In a recent interview of ‘Sunil Mittal’ he said that Bharti Airtel will have 100 million bank accounts in their “Airtel Payments Bank” but on the other hand Jio has already done the same thing by providing free offers to 100 million users.
Actually telecom operators is an open network and there is no restriction that what should be the minimum price. Then how airtel can force Jio to set the minimum price of their services. Airtel has filed petition against extension of Reliance Jio free 4G service beyond December. In its 25-page petition before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).
Reliance Jio has been so much useful and it’s affordable for any common man. Before Jio’s launch, 1 GB of 3g/4g internet data costed from 250-300 which was not affordable by a common man but now the same data pack is come down at 100 INR which has led to a telecom revolution.
Final Words: So the definition of fair competition according to airtel is only when the company earns profits it is fair the customers say doesn’t matter for them. Airtel is the least impacted because of their 4G rollout, distribution reach. Their management is completely devoted and they have least market share or traffic share loss.