Reliance Jio 4G Free Offers & Services Have Led To Rs 685 Crore Loss To The Government
The Telecom Commission (TC) has blamed the TRAI to have allowed Reliance Jio 4G to jeopardize the health of Telecom sector in India.
The TC, an inter-ministerial panel has pulled up Telecom Regulatory Authority of India (TRAI) for approving free offers beyond the allowed time.
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According to the sources, Reliance Jio 4G free services have cost the government about Rs 685 Crore.
Reliance Jio Free Call & Data Plans Have Cost The Government Rs 685 Crore
The government of India collects spectrum usage charges and license fees from telecom operators based on their revenue generated.
With free offers from Reliance Jio 4G, the tariffs have reduced, resulting in a net loss for the government.
According to the media reports, based on the current trend, the revenue is likely to decrease about 8% to 10% more.
Lower income would affect the Indian Telecom at large. The Telecom operators at present owe over Rs. 1 lakh crore for the spectrum charges and over Rs. 4 lakh crore to the Indian banks.
About 20% of the revenue has been lost to the Indian Telecom industry with the incredible free offers from Reliance Jio 4G, says India ratings and research.
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Reliance Jio 4G Offering Free Data, Voice & SMS
Jio has been offering all its customers free data, voice and text services from September 2016.
With the offers from Reliance Jio 4G, other telecom operators like Bharti Airtel, Vodafone, Idea Cellular have also reduced their tariff rates to keep up with the competition. This has led to a potential decrease in their income as well.
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The telecom Commission is the highest regulatory authority in India and it has now asked TRAI to review the existing rules and make sure that there is financial growth in the Telecom sector
Telecom operators like Bharti Airtel, Vodafone, and Idea Cellular have raised their concerns over the financial impact of the free services from Jio at multiple levels.
TRAI should implement the orders of the TC and have a control over the promotional offers and mobile tariffs.
There is a true scope of development when Jio is involved in public spat along with the other telecom players like Bharti Airtel, Idea cellular and Vodafone.