Reliance Jio Dismisses Claims Made by COAI for Relief In a Strongly Worded Letter to DoT

There has been a widespread controversy going on in the telecom industry over the new Supreme Court order, which has changed the definition of the Adjusted Gross Revenue (AGR). The new order from the Apex Court has put a massive pressure under the two of the major telecom companies in India, Bharti Airtel and Vodafone Idea who now have to pay over Rs 80,000 crore in dues in only three months. The Cellular Operators Association of India (COAI), which represents the telecom operators of India has written a letter to the government asking for relief from the centre over the issue and saying that the telecom industry could collapse if relief is not provided to these telecom operators. However, the other major telecom operator in the country, Reliance Jio is not agreed on this matter with the COAI. Hence to present its own views independently, Reliance Jio has written a separate letter to the Department of Telecommunications (DoT).

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Reliance Jio Asks Government to Dismiss COAI Plea

In its letter to RS Prasad, the telecom minister, Reliance Jio has noted that the COAI has not left any choice to the telecom operator, other than to reach out independently to the DoT, as the association went on with the previous letter without taking Reliance Jio’s views on the matter and the opinions that the letter presented. Further, Reliance Jio said that the COAI has used a threatening tone towards the government by referring to possible job losses, QoS loss and loss of investments in the sector. It also said that these two telecom operators, whose views constitute most of the views represented in the letter, have implied that if relief is not provided by the government on the matter of the AGR, then they will stop operations. Reliance Jio has asked the government to “strongly rebuff such suggestions and insinuations”.