Jio's free phone will hit telecom, erode revenues of competitors: Voda to DoT

The country's second largest telecom player Vodafone expects Jio's 'effective free phone' with unlimited calling to erode operators' revenues which are already under pressure and sought reduction in various levies imposed by the government as a breather to the industry.

"...The new operator continues to aggressively under- price its services, including announcing launch of 'Effective Zero Price Feature Phone' with unlimited voice.

"This is likely to cause further erosion in revenue for existing operators," the company in a letter to the Telecom Commission Member (Finance) Anuradha Mitra.

RIL Chairman and MD Mukesh Ambani recently launched JioPhone, a 4G feature phone at a one-time fully refundable deposit of Rs 1,500 per unit. Jio has slated to beta-test the low-cost phone from August 15. The booking will start from September 24 online as well as through Reliance Retail and Jio stores.

Vodafone said there is a continuous decline in its revenue from telecom services and it has recorded further decline of 3.41 per cent in the quarter ended June 2017.

It also called for reducing the interest rate applied for deferred spectrum payments.

"...A reduction in the interest rate applied for deferred spectrum payments is necessary to reduce a burden on operators. Hence, we have requested a reduction from 10 per cent to G Sec rate of 6.25 per cent-6.5 per cent on deferred payment," the letter said.