Airtel misrepresenting records to create policy bias: Jio


New Delhi: Bharti Airtel Ltd on Wednesday wrote to the united states of America’s telecom regulator announcing that Mukesh Ambani-promoted Reliance Jio Infocomm Ltd turned into constantly trying to distort statistics at various platforms to “display different operators in awful mild and create policy bias in its favor”.

The bone of rivalry is interconnection user prices (IUC), paid by using telecom company which originates the call, to the one which terminates the call, presently set at 14 paise. Older telecom corporations want it to be raised to at least 30 paise, at the same time as new entrant Reliance Jio desires it reduce to 0. Reliance Jio stated in July that India’s top 3 telecom firms earned Rs1.04 trillion in the beyond 5 years by now not implementing a 2011 regulatory avenue map to cut IUC to 0.

Countering this argument in a letter addressed to the chairman of Telecom Regulatory Authority of India (Trai), Airtel said it has no longer made any gains due to IUC and has as an alternative incurred a loss of Rs.6,800 crore in the closing five years.

Within the letter, which turned into reviewed by Mint, Airtel said Reliance Jio did not suggest its supply of facts to analyze Airtel’s IUC revenues and mentioned the quantum of IUC acquired at the gross level. Even those gross figures are an awful lot higher than what it surely received, Airtel stated.

Airtel stated it has acquired an internet IUC of Rs.7,795 crore in remaining five years. Even at gift cost, the net IUC received stands at Rs.9,417 crore, it said.

“Now not best are the statistics provided by using Reliance Jio grossly wrong, but they appear to were misrepresented with the unique reason of maligning other operators and misleading the Trai and the general public at huge,” Airtel stated.

“This isn’t always the first time that Reliance Jio has followed such strategies. Even during its representation to the IMG (inter-ministerial group), Reliance Jio had provided you with deceptive claims that present operators have not infused sufficient equity into their operations and alternatively taken on debt. The fact is completely different though,” it said.

Airtel’s letter comes at the same time as a selection to scrap or lessen interconnection utilization charges is imminent.

Reliance Jio argues IUC is an artificial barrier created by using incumbent operators with legacy technology. “it’s far a subsidy for old operators who do no longer pass to new technologies. successfully, their inefficiency is being funded,” Reliance Jio had formerly said.

In a presentation at an open house discussion on the issue in July, Reliance Jio stated that blessings to incumbents Bharti Airtel, Vodafone India Ltd and concept cellular Ltd have come at a cost to clients and smaller operators and ended in monetary misery inside the sector. Reliance Jio said all investments made previous to 2010 were recovered via enterprise and the pinnacle 3 telecom corporations have generated excess returns as a result of IUC charged over time.

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