Is Bharti Mittal Turning Into The Telecom Trump?



As we all are aware with the offers given by the Jio to its users like free voice calls for the lifetime and free daily usage of 4G data. This offers bringing a revolution and disturbing this sector adversely which is in favor of the consumers.

Recently in an interview after the launch of Airtel Payments Bank, Sunil Mittal said Reliance Jio’s free offer is hitting the sector adversely and has created unfair competition in the market which his firm has challenged before court. This was done to stop Jio’s extended offer after 3rd Dec for which a 25-page petition was filed before the Telecom Disputes Settlement and Appellate Tribunal (TDSAT).

Is Mr Mittal Turning into the Telecom Trump?

There are some pointers which lightens the reality-

–          While releasing new offers, Airtel always used the word “Free” in all of its press releases but actually customers had to pay to avail those offers. Then claiming that giving something for free actually disrupts the market when actually Airtel are the ones using it for promotion activities.

–          We cannot neglect this fact that even though Jio is providing free services to customers but this doesn’t help Jio in making any profit, its only customers who get benefits of this.

–          People always blames Reliance for using government for its own welfare but here it’s something opposite, actually Airtel faced dropdown in it’s profits in the last quarter due to Jio and the effects of demonetization. In the BAML report it is clearly mentioned that Airtel has the most loyal customers and had a 97.7% retention rate still why do they have to go after the extension offer.

–          In the recent launch of the Airtel Payment banks, they announced to offer higher interest to acquire 100 million bank accounts gradually. On the other side, Reliance Jio had done the same by giving free offers to the users to grab 100 milllion customers. So if Airtel decides to sue Jio over it isn’t it Hypocrisy.

–          In India, telecom sector is the open market, where TRAI is the one who decides what will be the minimum price, then why does Airtel trying to do so?

–          Many of you know this fact that before Jio 1 GB data of Airtel was costed around 250 to 300 INR, now the same come down to 100 INR, which has led to a telecom revolution. So according to Airtel, the definition of fair competition is only when company earns profit and neglects customers sentiments by charging high.

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