The country's second largest telecom player Vodafone[1] expects Jio's 'effective free phone' with unlimited calling to erode operators' revenues which are already under pressure and sought reduction in various levies imposed by the government as a breather to the industry.
"...the new operator continues to aggressively under-price its services, including announcing launch of 'Effective Zero Price Feature Phone' with unlimited voice.
"This is likely to cause further erosion in revenue for existing operators," the company in a letter to the Telecom Commission Member (Finance) Anuradha Mitra.
RIL Chairman and MD Mukesh Ambani recently[2] launched JioPhone[3], a 4G feature phone at a one-time fully refundable deposit of Rs. 1,500 per unit. JioPhone beta testing starts from August 15[4]. The booking will start from September 24 online as well as through Reliance Retail and Jio stores.
Vodafone said there is continuous decline in its revenue from telecom services and it has recorded further decline of 3.41 percent in the the quarter ended June 2017.
Jio Phone Will Force Rival Telcos to Protect Subscribers: Jefferies[5]
It also called for reducing the interest rate applied for deferred spectrum payments.
"...a reduction in the interest rate applied for deferred spectrum payments is necessary to reduce burden on operators.
Hence, we have requested reduction from 10 percent to G Sec rate of 6.25 percent - 6.5 percent on deferred payment," the letter said.
Vodafone said that revenue share with the government imposes huge burden on telecom operators even though companies purchase spectrum at market price.
Reliance Jio Adds More Subscribers Than Airtel, Vodafone Combined in June: TRAI[6]
The company requested the DoT[7] to consider recommendation of...