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Jio's Connectivity Problem To Other Networks Is 'A Few Weeks Issue,' Says Mukesh Ambani: Report

Some existing operators say the "tsunami" of asymmetric voice traffic would choke them

08/09/2016 2:33 PM IST | Updated 08/09/2016 7:30 PM IST
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Following reports of portability and "interconnect" issues faced by some Jio customers while switching from or connecting to other networks, Reliance Industries Chairman Mukesh Ambani has said the problem is "a few weeks issue," which will resolve as customers start to question the "anti-consumer" actions of incumbents.

In an interview with The Times Of India, Ambani said it's essential that rival telco companies "didn't deny new technology" to consumers.

"It's like saying that because you are a dominant person, you violate traffic lights. You can be let off once or twice, maybe. But in the long run, you cannot take violation of legal license obligations lightly," he said.

Ambani added the overwhelming response after the official launch of Jio was something even Reliance had not expected.

Earlier this week, the Cellular Operators Association of India, a telecom industry lobby group, reportedly wrote to the Prime Minister's Office a second time, saying existing telco players couldn't entertain Reliance Jio requests for interconnection points as they didn't have the network or the financial resources to handle the amount of asymmetric voice traffic from 100 million Jio customers, according to an Economic Times report.

"The overwhelming burden of this free lunch is sought to be passed on to rival operators through tariff manipulations, which exploit the Interconnect Usage Charge (IUC) regime, and offload tsunamis of asymmetric voice traffic that will choke and financially destroy competition," said Rajan Mathews, director general of the COAI.

Additionally, the weighted average voice realisation of existing operators could plunge from 30-40 paise per voice minute to 22-25 paise per voice minute or even lower, COAI added. The group also contends that existing operators would be compelled to handle voice traffic that is double their total present levels.

Since the launch of Jio last week, Reliance has been facing a problem of plenty with people queuing to buy a Jio sim and stores turning away potential customers unable to handle the rush of customers, the Mint reported.

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