COAI says Reliance Jio’s latest pricing will continue to bleed the industry

By Shrey Pacheco | Updated 13 Jun 2017
COAI says Reliance Jio’s latest pricing will continue to bleed the industry
  • The telecom operator’s body said the the new pricing has a risk of creating a cascading impact on banks and other institutions

It seems like the war of words between Reliance Jio and other incumbent telecom operators will not stop. A day after Reliance Jio announced an extension of the Prime Membership deadline and its free services, The Cellular Operators Association of India (COAI) has said that the pricing introduced by Reliance Jio would continue to bleed the industry. The telecom operator's body said that this has a risk of a creating a cascading impact on banks and other institutions that have a large exposure to the telecom sector.

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According to a report PTI, the operator’s body stated that while the market’s move towards lower pricing is good for consumers, the question of whether such plans conform to tariff regulations is a matter that needs to be settled by the courts and telecom tribunal. COAI director general Rajan Mathews told the publication, “The industry will continue to bleed under this pricing, and there is the risk of cascading impact on the banks, government (accruals from licence fee and spectrum payments made by telcos), and equipment manufacturers.”

To recall, after initially stating that it would finally start its tariff plans from April 1, Reliance Jio announced the ‘Summer Surprise’ offer in which it would wave off the tariff for another three months, ending July this year. Further, the final deadline for subscribing to its Prime Membership plans have been extended till April 15. 

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Shrey Pacheco
Writer, gamer, and hater of public transport.
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