COAI allegations are malicious and ill-informed: Reliance Jio

The Cellular Operators Association of India (COAI) had accused Reliance Jio Infocomm Ltd of providing full-fledged services to 1.5 million users “in the guise of testing.” Refuting to the allegation, Mukesh Ambani-led RJio has responded back by stating the claims are "malicious, unfounded, ill-informed and frivolous" and have been made with "ulterior motive" of promoting vested interests of incumbent operators.

Without naming anyone, the new entrant said the top three incumbent operators, who are core members of COAI, are opposing the downward revision a substantial component of revenues, called Interconnect Usage Charge (IUC).

The COAI had on Monday written to the Department of Telecom (DoT) to immediately ask Reliance Jio to stop all connections provided to 1.5 million users because it had allegedly bypassed regulations by offering full-fledged services under the guise of test connections.

Jio further stated that "The Company had duly informed the need and process of test trials to the DoT and Trai from time to time and added that the test trials were in accordance with the terms of the license."

Jio also shared details of the scale and reach of its project, it has created the world's largest end- to-end all IP network and invested over Rs. 1.34 lakh crores, higher than the gross block of any incumbent operator.

"Once launched, the services will cover over 18,000 towns and over 2 lakh villages across all the 22 service areas of the country. The coverage will soon be increased to cover over 90 percent population of the country. Considering the large network, "the need for test trial of the network, including the technology, services deployment, commissioning and operationalisation, and related business processes relevant for the network, are immediately required in order to assure the quality of service", it said.

Jio also cleared the air about who will end up paying more IUC. "Though, needless to clarify, currently there would be more outgoing calls from 35 percent plus subscribers to 65 percent subscribers, which in effect means significant and increased IUC inflow in the hands of current dominant incumbent operators, effectively stifling the other operators, including the later and new entrant operators," the letter said.

The COAI has also alleged that Jio’s high voice traffic was choking networks of existing companies, to which RJio has made a counter allegation that it was not provided the required Points of Interconnect (PoIs) even though it had kept the TRAI informed about the utilization of PoIs.

“We state that all the steps taken by COAI, alleging unfounded biases with the regulator, and by writing letters against test trials, are in fact attempts to sabotage the market entry of RJio, a new player and malign its name,” RJio concluded.