Reliance Jio Baffled as DoT Mandates 2G Infrastructure in New Tender Norms

Reliance Jio is disappointed by the new development and changes in the norms of tender. The Mukesh Ambani led telco has alleged that making the use of 2G infrastructure for government-funded telecom projects would mean losses for Jio, and it would also mean unbalanced favour to the other incumbent telcos. If the amendments are finalised, Reliance Jio estimated that it would face a loss of Rs 5,000 crore. To revert the changes and to request intervention, the carrier wrote a letter to Universal Service Obligation Fund Administrator Sanjay Singh and also marked it to telecom minister Manoj Sinha and telecom secretary Aruna Sundararajan. The telco sought the high officials’ need as essential to change the newly introduced tender norms.

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According to PTI, the matter spurted into public eyes when the DoT (Department of Telecom) in June first week invited bids to install 214 mobile towers in Andaman and Nicobar Islands (ANI) for the provision of 2G and 4G services in uncovered villages. As per an ET report, the project is to be funded by USOF and the government. For readers’ information, USOF is a fund created through the telcos’ money collected as part of their every call. This new bid mandated that 2G network would be used for the rollout of telecom services in the Andaman and Nicobar islands.

This announcement came up as a severe blow to Reliance Jio since the telco reasoned that ousting 4G exclusive telecom operators was discriminatory.