Jio writes to COAI, disagrees its stand taken on two leading telecom players
By MYBRANDBOOK
Telecom major Reliance Jio Infocomm Ltd (RJIL) wrote to the Cellular Operators Association of India (COAI) on Wednesday, condemning of a serious breach of trust and alleging the industry body of trying to “exploit the legitimate pay-out obligations to create an alarmist propaganda for the doom of telecom sector in the country”.
The reaction comes after COAI wrote a letter to the Telecom Minister Ravi Shankar Prasad on Tuesday night, of how leading players Bharti Airtel and Vodafone Idea will face an “unprecedented crisis” if the government refuses to relax its demand for $13 billion in outstanding dues.
The letter was sent in spite of the fact, as Jio has cited in its letter that it would have provided its detailed comments by the morning of 30th October 2019.
“RJIL completely disagrees with the intent, tone, contents and connotations of the COAI letter. This letter does not represent the industry view by any stretch of imagination,” the letter from RJIL read which was addressed to Rajan Mathews, Director General - COAI.
“The failure of two operators (indicating Bharti Airtel and Vodafone-Idea), even in the unlikely event of it actually happening, will not have an impact on the sector dynamics with existence of vibrant competition including presence of the PSUs and ‘there is no restriction on entry by new operators’.
Further, there will be no impact on the digitisation and government programmes, as these operators, anyway were not investing sufficiently in the sector and ‘have been shedding crocodile tears’ by claiming a financial stress for a long time now and they not shut shown any inclination to modernise the networks, as evident for TRAI data in its IUC,” the letter further added.
The letter also read, “Despite the COAI’s and these two operators continued highlighting of the so-called financial stress, these service providers have chosen to continue with their below cost tariffs, especially when there is no competitive pressure compelling continuation of these tariffs.”
“COAI has again attempted to rake up the issue of merits of AGR case like notional revenue, which has already been settled by the Supreme Court judgement. While all these were argues in detail during the proceedings in the court and subsequently rejected by the Supreme Court, these operators have the option to fulfil their licensing obligations in terms of payment of LF/SUC on the disputed amount, more particularly in view of the Supreme Court Judgement of year 2011 on the same matter.”
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