Airtel Says Dhan Dhana Dhan Offer Violates Rules; Jio Attacks Airtel, Vodafone, Idea For Using Unfair Means
With Jio’s Dhan Dhana Dhan offer, a new wave of accusation and counter-accusations have surfaced among India’s leading telecom players.
Both Jio and Airtel are now locked in a fierce battle to prove superiority, as both are accusing one another of using unfair means to gain customers. Meanwhile, business analysts have predicted that Jio’s continued tsunami will lead to more losses for all other telecom players, as their revenues will continue to slide.
We had already reported that telcos are losing Rs 37,000 crore due to Jio’s impact; and RCom has already fired 800 employees due to declining revenues.
Airtel: Jio Is Violating TRAI Rules With Dhan Dhana Dhan Offer
After Jio launched their Dhan Dhana Dhan offer to replace Summer Surprise Offer, Airtel has come out strongly against this new scheme, calling it “old wine in a new bottle”.
Sunil Mittal, founder of Bharti Airtel said that Jio’s Dhan Dhana Dhan Offer “essentially continues with a similar plan now masquerading under a different name.”, adding, “This is a classic example of old wine in a new bottle,”
After TRAI suggested Jio to end Summer Surprise Offer, which offered 3 months of free 4G Internet for Rs 303, Jio launched Dhan Dhana Dhan Offer which basically adds Rs 6 to the previous plan, and offers the same benefits.
Explaining that Jio’s latest free offer will continue to bleed the industry, Airtel said, “The industry is in a very weak position and continues to bleed. With a weakened financial position companies will find it difficult to raise the capital to invest and roll out broadband networks.”
Airtel has asked TRAI to review this offer, and stop Jio from offering further free plans.
Our Video on Reliance Jio’s Dhan Dhana Dhan Offer
Jio: Airtel, Vodafone, Idea Is Using Unfair Means
Meanwhile, Jio has launched a counterattack against every other telecom player, accusing them of using unfair means to retain customers, and stopping them from porting out to their platform.
Using strong words of protest, Jio has written a 5 page letter to TRAI, asking them to take action against Airtel, Vodafone, and Idea.
The letter said, “At the outset, we submit that so far as these MNP offers are concerned, these are in gross violation of extant telecom laws including Telecom Tariff Order, 1999,”
As pe Jio’s complaint, these telecom providers are using “surreptitiously” means to retain those users who are porting out; executing “unfair and deceptive” strategies to handle each case on a one to one basis and they are using policies which are “gross violation of the licence norms, telecom tariff orders and mobile number portability (MNP) guidelines.”
While Airtel has dismissed these accusations, Idea hasn’t responded yet. In a statement, Vodafone said that their main priority is to satisfy their customers, and due to this reason, they are being offered “exciting and engaging propositions catering to their myriad requirements, in accordance with applicable norms, regulations and industry best practices”.
Meanwhile, analysts from Bank of America-Merrill Lynch has said that due to the Jio effect, telecom players will continue to suffer losses as “the full impact of Jio’s free offering and existing consumers of Bharti and Idea down-trending to lower packs will be witnessed”.
As per the analysis, Airtel/Idea may witness reduction in revenues by 6-6.5% decline in revenues, compared to previous quarter; and 398/540 basis points drop in Ebitda (earnings before interest, tax, depreciation and amortisation), for the same period.