Idea too joins court battle on Jio's 'happy new year' offer

The corporate war in the telecom sector escalated on Wednesday with AV Birla Group company Idea Cellular also approaching the telecom dispute tribunal TDSAT against regulator Trai for allowing Mukesh Ambani-led Reliance Jio to continue its free voice and data services beyond the 90 days permitted for promotional offers.

Sunil Mittal-led Bharti Airtel had moved a petition against Trai on the Jio free offer issue with the Telecom Dispute Settlement and Apellate Tribunal (TDSAT) last month. Airtel had gone to the extent of alleging that Trai had been ``a mute spectator to the violations.'' According to reliable sources, Idea's petition in the TDSAT asking for quashing of Reliance Jio's promotional offer has been ordered to be listed and heard along with the Bharti Airtel petition on February 1. Both Airtel and Idea Cellular have alleged that Jio should have terminated its free voice and data offers by December 3 which happens to be the last day for f 90-day period for which any telco can make a promotion offer.

Jio, on the other hand, has claimed that it has not violated any rules as the two offers are different.

The two incumbent telcos have alleged that Jio under the guise of a different nomenclature - 'Happy New Year' which followed the 'Welcome Offer' - has continued to offer the free voice and data offer till March end. This, according to them is a commercial offer and tantamount to predatory pricing which is uncompetitive.

Jio had first launched an inaugural free voice and data plan beginning September 4 and in December extended it till March 31, 2017, a move that was vehemently opposed by incumbent operators. Trai on October 20 said that since Jio's offer of free services was only valid till December 3, it is consistent with the direction for 90 days permissible for promotional offers.

Idea's counsel is reported to have highlighted the October 20 order of Trai and the regulator's inaction since December 3. Trai will file a response on condonation of delay application, while Reliance Jio has been allowed to file impleadment application, sources said.

In its 25-page petition before TDSAT, Airtel had asked the quasi-judicial body to direct Trai to ensure that Jio does not provide its free voice and data plan beyond December 3. TDSAT on its part had asked sector regulator Trai to take a decision on Reliance Jio's free 4G service ``within a reasonable time.''

The tribunal's observation came after Trai sought some more time to formulate its views on the Jio's free voice and data offer. Trai has now asked for the attorney general's views Reliance Jio's free voice and data offering till March that rivals have called predatory.

This follows Trai examining replies furnished by Jio to its letter seeking explanation after the company announced free data and voice calls for existing and new customers under the 'Happy New Year offer', days before the 90-day inaugural welcome plan ended on December 3. The regulator had last month asked Jio to explain why the free data offer under the promotional scheme should not be treated as predatory.

In its letter, it had cited Jio's consumer base growing to 63 million as on December 18 to state that the company will become a significant market player in the broadband space shortly, maybe by December-end.