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This Article is From Mar 10, 2017

Telecom Tribunal Reserves Order On Reliance Jio’s Promotional Offers

Telecom Tribunal Reserves Order On Reliance Jio’s Promotional Offers
A customer holds a SIM card packet while waiting to connect his mobile phone to the carrier Reliance Jio (Photographer: Dhiraj Singh/Bloomberg)

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Thursday reserved its order on Reliance Jio Infocomm Ltd.'s promotional offers. TDSAT was hearing an appeal by incumbent players Bharti Airtel Ltd. and Idea Cellular Ltd. challenging the telecom regulator TRAI's decision to allow Reliance Jio to continue its free promotional offer Happy New Year beyond the stipulated 90 days.

Bharti Airtel's counsel Gopal Jain argued that the Telecom Regulatory Authority of India (TRAI) did not follow a transparent process and avoided giving reasons for its decision.

"When asked, twice by this bench as well, the answer has been stonewalling and blocking. The offer by Reliance Jio is illegal, contrary to the meaning of promotional offer. This is a fit case to set aside the offer or stay…Time is ticking," he said.

Additional Solicitor General Tushar Mehta, representing the telecom regulator, said: "TRAI is being made a whipping boy…the shooting practide should not be on TRAI. When we reject a complaint, it is not a direction or a decision. Appeal is not maintainable. They should complaint against Jio and not TRAI."

Reliance Jio's counsel countered by saying competitors have also started offering free calls. “Interim relief is granted only when there is irreparable loss. No such thing here.”

Billionaire Mukesh Ambani-led Reliance Jio started operations in early September last year, with a bevy of free promotional offers, giving free voice call and data till March 31, 2017.

Bharti Airtel and Idea Cellular moved TDSAT this year, questioning the telecom regulator's clean chit to Reliance Jio's “predatory” pricing.

Following this, TRAI had asked Attorney General Mukesh Rohatgi for his views on the matter, who had said that Reliance Jio's tariff plans do not violate any existing regulation or order issued by the regulator, and therefore it should not intervene in the matter. This was communicated to the two companies by the telecom regulator.

On February 23, the telecom tribunal had asked the regulator to place all documents pertaining to Reliance Jio's free offers and specify whether the tariffs were a regular plan, base plan or special tariff voucher.

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