Jio brings new offer for Prime members; Airtel sees red
Stating
that the industry is in a "very weak"
position and "continues to bleed", Airtel said that the financial impact
that telcos are seeing does no good to customers, in the long term.
After regulator TRAI nixed its complimentary offer, Reliance Jio
today announced a new plan of 1GB 4G data daily for 3 months at Rs 309
for its Prime members but rival Airtel dubbed the offer as a case of
"old wine in a new bottle".
Announcing its new offer, Jio said
that under the Rs 309 plan it would provide "unlimited SMS, calling and
data (1GB per day at 4G speed) for 3 months on first recharge".
For
Rs 509, the company is offering unlimited SMS, calling and double the
data (2GB per day) for 3 months on first recharge. The new plans with
benefits for Jio Prime members is aimed at encouraging subscribers to
"live the digital life without restrictions", Jio said in a statement
"Considering
the special benefits that are available to Jio Prime members, customers
who were unable to subscribe to Jio Prime for any reason, can continue
to do so by paying Rs 408 or Rs 608 (Jio Prime + recharge price) to
avail these benefits," the statement added.
Objecting to the
offer, incumbent Bharti Airtel hoped that the "authority (TRAI) will act
against this provocative disregard of their direction".
"... We
are surprised to see what Jio is doing.
It violates the spirit of the
TRAI directive and essentially continues with a similar plan now
masquerading under a different name. This is a classic example of old
wine in a new bottle," an Airtel spokesperson said.
Stating that
the industry is in a "very weak" position and "continues to bleed",
Airtel said that the financial impact that telcos are seeing does no
good to customers, in the long term.
"With a weakened financial
position, companies will find it difficult to raise the capital to
invest and roll out broadband networks," Airtel cautioned. The move by
Jio comes within a week of the telecom regulator asking the Mukesh
Ambani telecom company to withdraw its contentious three-month
'complimentary' offer of unlimited data usage and free calls on payment
of a minimum Rs 303.
TRAI, on April 6, had asked Jio to stop the
'complimentary' service offer saying it was not in accordance with the
regulatory framework. TRAI had said that Jio will be required to roll
back the 3-month complimentary offer in "shortest possible time" but clarified that customers who had already subscribed to the said scheme
could avail the benefits till June-end.
Earlier this week, telecom
operator Vodafone approached TRAI alleging that Jio was inviting last
minute subscriptions to its 'Summer Surprise' offer despite the
regulator finding it in violation of norms.
Jio had, however,
countered the charges saying the company had made it amply clear that
the complimentary offer would be withdrawn as soon as operationally
feasible, and that customers who subscribed prior to discontinuation of
the offer, remained eligible.
In a statement here today, Jio said
that it has fully withdrawn the Summer Surprise offer following the
advice of the telecom regulator.
When contacted, industry
association COAI's director general Rajan Mathews said, "TRAI is the
competent authority to determine whether it (the offer unveiled by Jio)
is continuation of the old tariff, a new offer or whether it complies
with the regulations
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