Bad news for Reliance Jio users

TRAI sent notice to Reliance Joi for violation of telecom laws

Telecom regulator, TRAI has recently asked Reliance Jio to explain that why extension of its free voice and data plan should not be violation of existing regulations requiring promotional offers to be limited to 90 days.

Ultimately, TRAI has asked the brand, why should the free offer not be declared illegal after December 31.

TRAI shot off the letter after the Mukesh Ambani-led firm announced free data and voice calls for existing and new customers under the ‘Happy New Year offer’, days before the 90-day inaugural welcome plan ended on December 3.

In the December 20 letter, the regulator, which is in the process of examining the new plan by Reliance Jio, also asked why the offer of free data under the promotional scheme should not be treated as “predatory”.

When contacted, the company did not offer any comments on the issue. Sources with direct knowledge of the development said the regulator in its letter had cited RJIL’s consumer base growing to 63 million as on December 18 to state that the company will become a significant market player in the broadband space shortly, may be by December-end.

Bad news for Reliance Jio users
Jio in trouble

Stating that the preliminary analysis relies on factors like average subscriber additions per day and free data being offered, TRAI is learnt to have asked RJIL to clarify as to “why the offer of free data under the promotional offer should not be treated as predatory.”

Another source said that in a meeting with TRAI, Reliance Jio has said that the latest Happy New Year offer is substantially different from the Jio Welcome Offer which commenced on September 5 as in the initial offer it had provided 4GB of free data per day, and in the new offer the same was capped at 1GB under Fair Usage Policy.

Also, they contend, in the first offer there was no option of renewal or payment after the 4GB limit was exhausted, but in the new offer, one can recharge both data and the promised speed.

In terms of market dominance, Reliance Jio is six per cent of the installations in the country whereas the Competition Commission of India (CCI) norms specify 30 percent threshold to trigger the ‘misuse of market dominance’ clause.

As per the reliable sources, TRAI has also asked Reliance Jio to give an estimated month-wise projection of the number of subscribers that are expected to be added till March 31, 2017. Jio has been given five days to clarify on the issues raised by the regulator.

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