Reliance Jio Infocomm has rejected Bharti Airtel’s allegation that its 4G network cost is low due to different accounting practices. According to Jio, the cost differential results from the technology that it has deployed.
As per Airtel, Jio has different accounting standards unlike other operators, who use established practices for deciding cost to be capitalised in the balance sheet and reflected in the profit and loss (P&L) account.
However, Jio states that its cost is low due to the deployment of voice over long-term evolution (VoLTE) technology and added that cost of carrying a voice call on an IP network is close to nil at 0.05 paise a minute. Further, as per Jio, rival teclos are exploiting 2G/3G customers by charging Rs 1.50 a minute for voice calls by failing to upgrade to the IP framework.
