Reliance Industry's (RIL) telecom arm Reliance Jio has claimed that its average customer is never likely to pay for the calls as it offers five times more free outgoing calls limit on other networks than what is required by the customer.
"Entitlement for off-net calls in Jio's 'All in One Plans' is more than 5 times of what an average customer uses as per industry data and consequently, an average Jio customer is unlikely to have to ever pay for off-net calls. We reiterate that Jio plans offer up to 25 percent higher value than comparable plans of other operators," the company said in a statement.
The statement comes after Bharti Airtel and Vodafone Idea removed cap on outgoing calls limit outside their network with effect from December 6. On the same day, Jio rolled out mobile call and data plans priced up to 40 percent higher compared to previous offerings.
The company is offering 1,000 minutes per month (28-day cycle) of free calling every month across all plans.
Both Bharti Airtel and Vodafone Idea earlier capped outgoing calls to other networks at 1,000 minutes in plan with 28-days validity, 3,000 minutes in 84-day validity and 12,000 in 365 days validity plan. Beyond this limit, customers were required to pay 6 paise per minute for outgoing calls made to other networks.
After reporting massive losses in the second quarter, Vodafone Idea and Bharti Airtel announced on November 19 their decisions to increase call and data charges from December for the viability of operations.
This was followed by an announcement by Jio, stating that the company was exploring an "appropriate" increase in tariffs to comply with the regulatory regime. It had, however, added that the spike will be in a manner that does not adversely impact data consumption or growth in digital adoption.
Vodafone Idea reported a consolidated net loss of Rs 50,921 crore for Q2FY20—highest ever loss reported by an Indian company. Bharti Airtel posted a quarterly loss of Rs 28,450 crore. The losses stemmed from provisions set aside by the two firms for unpaid government dues after the Supreme Court ruled in favour of the government in AGR case.
The apex court has upheld the government's position on including revenue from non-telecommunication businesses in calculating the annual AGR of telecom companies, a share of which has to be paid as licence and spectrum fee to the exchequer.
(Inputs from PTI)
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First Published: IST