India’s largest telecom operator, Bharti Airtel said today that it is losing Rs 550 crore per quarter due to the huge volume of calls originating from Reliance Jio network. The company claimed that it is losing 21 paisa per minute on calls originating from Jio network. Airtel accused Jio that it is hitching a free ride on the communication highway built by Airtel. The company also said that competition is okay and healthy for any industry, but what is currently happening is an example of monopoly. Airtel, along with Vodafone, also claimed that the losses may affect their services in rural areas of the country.
However, Jio has rubbished the claims, saying that the established players such as Airtel and Vodafone are utilizing old technology in rural areas. Jio said that it is widely known globally that 4G networks are more efficient and cost-effective, and yet established operators such as Airtel and Vodafone continue to force people in rural areas to use 2G network. On the possibility that losses may prompt established players such as Airtel and Vodafone to shut operations in rural area, Jio said that it will set up its network the very next in any village where other telecom operators may decide to leave. From the arguments, it certainly appears that Jio is being unnecessarily targeted for providing cost effective and improved services to customers.