The data and prime war between the telecom operators are not stoping. Reliance Jio is blaming the incumbents for milking the sector using the money that is hired by them. But the other telecom operators like Idea, Vodafone, and Airtel are blaming the Reliance Jio and its offer of free voice and data for financial woes of the sector.
The India’s richest Mukesh Ambani’s owned firm said on Monday in a meeting with an inter-ministerial group (IMG) that the duties should be reduced and telecom operators should also perform an action to making equity mixture and new technology investment as a preference. Except the executives of Reliance Jio; Reliance Communications (Anil Ambani-owned Company), Aircel and Tata Teleservices executives are also present in the first IMG meeting on Monday. The remaining telecom operators will also meet IMG in next few days. The promoters have been called for the discussion about the fact later this month by Telecom Minister Manoj Sinha and regulator TRAI.
“Incumbent operators that have tried to block the entry of new players and prevented the launch of new technologies are now passing the blame and seeking relief,” a presentation made by Jio said.
On June 16, the big three Idea Cellular, Airtel and Vodafone India will make presentations to the IMG. The financial stress on smaller operators is because of the three big operators Vodafone, Idea, and Airtel as Jio claimed. Jio also said that big three Idea Cellular, Airtel and Vodafone India are seeking relief from the government by leveraging the problems of small operators. According to the sources, Aircel, RCom and Tata Teleservices has told the panel that license fees must be reduced to a uniform rate of 5 percent and the usage charge of the spectrum to 1 percent.
While the big three operators Idea Cellular, Airtel and Vodafone India are alleging the same that cause of the current woes are free services offered by the Reliance Jio.
But on the other hand Reliance Jio told the panel of officials that the main cause of the financial stress are not investing in new technology or equity but kept on piling debt by the big three operators.
While Mukesh Ambani’s led firm said in the report that incumbents need to invest immediately Rs 1 crore to 1.25 crores in bringing the telecom sector back on track. Jio also told while 70-80 percent of total debt. The operators have not invested in new technology.
The IMG will meet banks including PNB, Axis Bank, SBI and HDFC to discuss the telecom industry’s financial difficulties, PTI sources in Telecom Department said.