DECEMBER
27, 2016
Telecom regulator TRAI has
asked Reliance Jio to explain why extension of its free voice and data plan
should not be seen as violation of existing regulations requiring promotional
offers to be limited to 90 days.
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, Reliance Jio Infocomm Ltd (RJIL) 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.
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, Jio has said
that the latest Happy New Year offer is substantiatively different from the Jio
Welcome Offer (that 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 per cent threshold to trigger the ‘misuse of market
dominance’ clause.
Sources said, TRAI has also asked 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.
Jio first launched an inaugural free voice and data plan
beginning September, and earlier this month extended the freebies till March
31, 2017.
On Friday, incumbent operator Bharti Airtel moved telecom
dispute tribunal TDSAT against TRAI allowing Reliance Jio to continue free promotional
offer beyond the stipulated 90 days, charging the regulator of being a “mute
spectator” to violations.
In its 25-page petition before the Telecom Disputes Settlement
and Appellate Tribunal (TDSAT), India’s largest private mobile services
operator had asked the quasi-judicial body to direct TRAI to ensure that Jio
does not provide its free voice and data plan beyond December 3.
TRAI said that Reliance Jio, through a letter on December 7, had
informed it about another promotional offer – Happy New Year – that would be
available to new consumers with effect from December 4, 2016 to March 3, 2017
and the benefits of which would be available till March 31, 2017.
Consumers availing the earlier promotional offers too would be
migrated to the Happy New Year offer, TRAI has observed.
TRAI said that free voice calls, unlimited video calling, and
free data, and free Jio apps among others, were offered without break under the
various promotional offers by RJIL from September 5.
Therefore, TRAI said, preliminary examination of the new offer
filed with it ‘prima facie’ reveals that except for minor change in the quantum
of data being offered in the new offer, it seems to be an extension of the old
promotional offer beyond 90 days.
//COPY//
