Reliance Jio launched its 4G service during the same time last year. Airtel is losing Rs 550 crore every quarter because of Reliance Jio 4G service in the telecom sector. Reliance Jio launch of new offers last year brought up data revolution in the country in less than a year. Now the company is expected to launch new offers, devices and shake telecom industry once again. Currently, Reliance Jio is heading the largest shares of 9.9% in the telecom industry. Jio wants that telecom industries should do away with interconnection charges, but Airtel believes this would lead to Monopoly situation for Jio.
Now the company is expected to launch new offers, devices and shake telecom industry once again. Currently, Reliance Jio is heading the largest shares of 9.9% in the telecom industry. Jio wants that telecom industries should do away with interconnection charges, but Airtel believes this would lead to Monopoly situation for Jio.
Airtel Losing Rs 500 Crore
Bharti Airtel reported that they have suffered a huge loss of Rs 550 crore every quarter. The company said that loss occurred due to the tsunami of calls from Reliance Jio. Every company suffered a huge loss and this was reflected in their budget. There is a dip of 44% in revenues from the sector in the year 2017. Airtel said that due to the tsunami of calls that originated from new entrant-Reliance Jio; Airtel loses 21 paise for every minute that is carried on its network. This lead to loss of Rs 500 crore every quarter to Airtel alone.
Even Reliance Jio witnessed that company has also suffered a loss of Rs 9.66 billion from the fourth quarter to March 31, which was Rs 900 million net profit at the same time in last year. Further Bharti Airtel added that growing competition will not let small telecom companies stay in the market. Thus, Company is forced into being a merger. AIrtel believes Reliance Jio is getting a free ride and continuing with a strategy of predatory pricing.
Reliance Jio: New Launch 4G Phone & Plans
Reliance Jio is going to launch a new 4G phone, which will be the cheapest device to support LTE in the world.With the launch of new JioPhone, the company is targeting consumers who are still using feature phones as their communication device. All new Reliance Jio phone will bring an end to the era of 2G and 3G smartphones. Thus it will be troublesome for all Indian manufacturers catering to this section.
In India, incoming calls are not charged and the network that was called need to pay a certain amount as Mobile Termination Charge (MTC). This MTC charge is part of Interconnect Usage Charge (IUC) and Jio is in favor of removing interconnection charges. Jio is offering free voice call across all network, and if MTC charges are removed Reliance Jio will be highly benefited. However, Airtel believes this would lead to Monopoly situation for Jio. Jio cost of free calls will be transferred to incumbents and cost Rs 15,000 – 20,000 crores per year for the industry.
Source: Gadget 360
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