Reliance Jio’s New Pricing Will Continue To Bleed Industry: COAI | The Wire

New Delhi: The Cellular Operators Association of India (COAI) has said that Reliance Jio’s latest pricing strategy will continue to bleed the telecom industry and that there is risk of a cascading impact on banks and other institutions that have large exposure to the telecom sector.

COAI said that while the  move towards lower pricing is good for consumers, the larger question of whether such pricing conforms to tariff regulations is a matter that needs to be settled by the courts and the telecom tribunal.

“The industry will continue to bleed under this pricing, and there is the risk of cascading impact on the banks, government (accruals from licence fee and spectrum payments made by telcos), and equipment manufacturers,” COAI director general Rajan Mathews told PTI.

The telecom industry owes close to Rs. 4.60 lakh crore to various financial institutions and banks. Mathews refused to comment specifically on the tariffs announced by Reliance Jio.

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Reliance Jio’s New Pricing Will Continue To Bleed Industry: COAI.