According to an Economic Times report, Jio's free data and voice services have cost the government about ₹685 crore.
While telcos have been known to be writing to regulatory body, TRAI, over the back to back free offers by Jio, it is for the first time that the Department of Telecommunications (DoT) has commented on the issue. It has impacted government finances in the third quarter of the financial year.
The commission, according to the report, is reaching out to TRAI 'reminding the regulator its inability to implement its own orders could jeopardise the banking sector, deferred spectrum payments to the government and orderly growth of the telecom sector.'
It has even questioned TRAI about recommending penalties of ₹3050 crore each on operators for denying Jio adequate interconnection. So, the government collects licence fees and spectrum charges, which are calculated depending upon their revenues. It is obvious that the revenues from not just telcos, but also from Jio will decline, due to the lower tariffs.
In the past, TRAI had said that promotional offers by telcos shouldn't exceed 90 days. Airtel has already filed a complaint against Reliance Jio with the Competition Commission of India (CCI), accusing it of predatory pricing, and anti-competitive behaviour, according to a Financial Express report.
Reliance Jio launched its free services on 5 September 2016, which was a promotional offer beyond 90 days until 31 December 2016. It then offered the Happy new Year offer that lasts until 31 March 2017, and then we've also seen Jio Prime announcement.
Reliance Prime is the next step to Jio's free data services. Reliance Industries chief Mukesh Ambani has announced the Jio Prime membership at the recent event. Users have to pay Rs 99 annual fee to become a Jio Prime member. Once enrolled as a Prime member, you then have to pay flat Rs 303 per month, which essential amounts to Rs 10 per day to enjoy all the benefits of the 'Happy New Year' plan until 31 March, 2018.