The Bill and Keep & Zero MTC would cost the telecom industry Rs. 15,000 – 20,000 crore annually and this will only increase going forward according to Airtel.
By proposing a transition to the ‘Bill and Keep’ regime with Zero MTC, Reliance Jio wants to simply transfer its cost to Airtel and other operators says Airtel spokesperson.
Such cost transfer will allow Reliance Jio to use its muscle power and price its services in a predatory manner to kill the rest of the industry and create a monopoly added Airtel Spokesperson.
Ravi Gandhi, Chief Regulatory Officer, Bharti Airtel said, “In effect, Reliance Jio aims to build its business by getting a free ride on the highways built by Airtel and other operators. Their proposal to move to Bill and Keep will further burden other operators and make them weak. At the same time, it allows Reliance Jio to continue with its strategy of predatory pricing and ultimately throttle all competition. This is the sinister design of Jio. The question to ask is does India want a monopoly situation in telecom?”
The allegations made by Reliance Jio regarding Airtel earning excess revenue from MTC (Mobile Termination Charge) are not only false but laughable. The TRAI mandated MTC of 14 paisa is well below the cost of producing a minute, which is currently at 35 paisa.
In fact, with the tsunami of calls originating from Reliance Jio’s network, Airtel loses 21 paisa for every minute that is carried on its network. This has resulted in a loss of Rs. 550 crore per quarter for Airtel alone.