In a letter to telecom minister, Reliance Jio has strongly opposed any bailout to Bharti Airtel and Vodafone Idea at taxpayer’s expense. Further, Jio has asserted that telcos should be mandated to deposit their dues within the court-stipulated timeline of three months, as they have the capacity to clear their liabilities.
Jio argued that even failure of two operators will not impact the sector dynamics adversely as there still exists a vibrant competition including presence of the public sector undertakings (PSUs).
Recently, Jio had objected to the Cellular Operators Association of India’s (COAI) relief plea for Airtel and Vodafone Idea. As per COAI, the telecom sector may collapse in absence of immediate relief by the government.
However, Jio has stated that failure of older operators cannot be blamed on the government and the equity investment by Airtel and Vodafone Idea has been inadequate.