Bharti Airtel Accuses Reliance Jio for Predatory Pricing, Demands IUC Correction

Bharti Airtel has rejected Reliance Jio’s accusation that the ongoing financial stress is created by incumbents telcos, and further accused the 4G entrant of predatory pricing.

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Bharti Airtel, which met the inter-ministerial group (IMG) on Friday, during its presentation demanded that telecom service providers should have the right to retail customers through offers and discounts.

The telco told the IMG that the Mukesh Ambani-led telco is trying to win the market by adopting predatory pricing approach, which has severely hit the industry’s revenue, net income and return on capital employed.

The Sunil Mittal-led telco reportedly sought a reduction in licence fee to 3 per cent and bringing SUC to uniform one percent rate.

Airtel also demanded relaxed spectrum payouts with a five-year moratorium, and lower GST rates for telecom services.

The telco in its presentation said that the industry requires an investment of Rs 2 lakh crore by 2020 for creating infrastructure for Digital India.

The country’s largest telco by subscribers and revenue also said that telcos be paid more for calls terminating on their networks, adding that the current call connects charges or IUC of 14 paise/minute is below cost and needs to be corrected.

Other incumbent telcos – Vodafone and Idea Cellular – also argued that Interconnection Usage Charges (IUC) need to be correctly determined to “prevent predatory voice pricing environment”.

Airtel in its presentation to the IMG said, “To prevent abuse of below cost termination charges, it is recommended that the present IUC should be corrected and fixed at the full cost incurred by the terminating operator.

Idea separately said that Jio’s free offerings had impacted the industry adversely. It suggested floor rate for both voice and data tariffs that it said would put a check on predatory pricing.

“Only solution is to have floor prices for voice, SMS and data services, so mobile telecom businesses generate adequate profit to invest and then compete based on the quality of service,” Idea was quoted as saying by media reports.

The Aditya Birla Group company said that top four telcos have cumulatively lost Rs 8,200 crore of revenue in the second half of last fiscal as compared to the first half due to free offerings by Reliance Jio.

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88 Comments on "Bharti Airtel Accuses Reliance Jio for Predatory Pricing, Demands IUC Correction"

 

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[…] drama between the incumbent operators like Airtel, Vodafone and Idea Cellular on one side and Reliance Jio on the other.?? Bharti Airtel was pressing for increasing the IUC owing to the high debt in the telecom sector […]

Kirti Khurana
June 18, 2017 11:29 am 11:29 AM

i do wonder airtel 3G still gives 8-15 mbps speed even after 70 days offer but Jio didn’t improve but becoming worst day by day hardly gives 0.30 mbps

Jio lover
June 18, 2017 6:49 pm 6:49 PM

Segmented offer vs universal offer
Lots of diff

DUANE
June 19, 2017 6:59 am 6:59 AM

Hi speeds range from 35 to 42 Mbps at Hyderabad and Secunderabad locations, respectively.

Kirti Khurana
June 19, 2017 12:09 am 12:09 AM

but they do provide 30 day combo for all.
i got 70 day on my new no. but I’ve come arcos my friend them all are using 28 day 1gb/day still better than Jioo 2G

Idea88
June 18, 2017 6:19 pm 6:19 PM

Stick to if u can which afford u … doesn’t matter how is coverage at all ….U should have decide it by looking what one offer good or not that suits u…

Sandy
June 18, 2017 12:47 pm 12:47 PM

Still brainless??? Airtel offers are limited to some people whereas jio offer is open to all. Dont you see the difference???

JioTower
June 18, 2017 7:17 am 7:17 AM

Somebody please confirm how long it takes to make a jio tower live after construction and equipment (place over tower work) completed?
In my area, Jio engineers when called 35 days ago told me the network would be working very soon But still it is delayed.
Please provide me information.
My location is Jamalpur Market, BHOJPUR, 802163, Bihar.

Idea88
June 18, 2017 6:17 pm 6:17 PM

First see website Tarang sancher by inserting your location also

JioTower
June 18, 2017 9:32 pm 9:32 PM

They are installing on bsnl tower. So, can’t.

Sunny | Lucknow
June 18, 2017 12:53 pm 12:53 PM

Tower goes live as soon as the equipment is installed. Optimization takes much longer, depending on various factors. Could be done in twenty days or could take two months. If it’s a monopole, if you stand at its base, you can see LEDs on the equipment flashing, indicating that the tower is live. You’d also see the new PCI values in Netvelocity etc. If the parabolic microwave backhaul antenna is still installed, it means the work is in progress and fiber hasn’t yet been connected. Otherwise they take down the microwave backhaul antenna quite fast, within days.

JioTower
June 18, 2017 9:37 pm 9:37 PM

They have just put a white parabolic microwave antenna 2 days ago. So, can u please tell me the expected date upto it would be live

Sunny | Lucknow
June 19, 2017 12:50 am 12:50 AM

If equipment & backhaul antenna has been installed then the tower should go live within a few days…infact it should be live by now. Even for testing they have to turn it on.

Nitin
June 18, 2017 3:46 pm 3:46 PM

PCI values are not constant and changes

Sunny | Lucknow
June 18, 2017 4:25 pm 4:25 PM

Every individual transciever on the tower I connect to has the same PCI & CGI. CGI never changes & a don’t recollect PCI value changing either but I’ll keep an eye on it to check what you’ve said. I am seeing the same PCI value since ages, even memorized them. 😛

Nitin
June 18, 2017 6:04 pm 6:04 PM

Dear i notices every 10-15 days PCI is changing at my location. RRH swap is also going on but don’t know much technical details. Fourth sector installation is also in progress.

Sunny | Lucknow
June 19, 2017 12:44 am 12:44 AM

*note down

Sunny | Lucknow
June 19, 2017 12:44 am 12:44 AM

I’ll more down the PCI of all the transcievers and see if it changes. I suspect they might be changing after a certain duration that’s why not easy to notice. Can you share the pic of fourth sector they’re installing? On monopole?

Sandy
June 18, 2017 12:48 pm 12:48 PM

May be its the problem with ofc deployment.

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