Jio questions Centre on delay in auctions, blams rivals for stifling competition

Reliance Jio has raised questions on the "inexplicable delay" on the government's part to hold the next spectrum auctions, saying without more airwaves, there will be a serious drop in network quality and also noted that the government is losing revenue. The largest telco has also alleged that its rival, who are for opposing early spectrum auctions, have “amassed large amount of spectrum” through M&A and want to "stifle competition" while “perpetuating” 2G technology and monetising old equipment.

Jio in a letter to telecom secretary Anshu Prakash, on September 28 said, "This is in furtherance to our aforementioned submission on the urgent need for immediate auction of all available spectrum in all identified bands. We reiterate that the inexplicable delay of four years in auction of spectrum since 2016 has created a situation of dire spectrum scarcity, which is impacting the quality of experience and growth of services. We are unable to find any reasonable rationale behind this sudden pause in a successful and fruitful policy of auctioning all available spectrum every year since the honorable Supreme Court decision in 2012."

The letter was also copied to Telecom Minister Ravi Shankar Prasad, PK Mishra, Principle Secretary to the PM, and other senior officials in the Digital Communications Commission, the highest decision- making body in the telecom department.

Reliance Jio has laid an attack on its rivals Bharti Airtel and Vodafone Idea - without naming them - and alleged that they have created hurdles in the auction sale. "We understand that a few service providers might be opposing spectrum auctions to stifle competition, as they have amassed a large amount of spectrum, through mergers and acquisitions, and they are also losing customers every month," said the letter.

Jio also questioned the government as to why the auctions are stretched to the 11th hour since it also means loss of revenue. "We submit as per policy implemented and as per the decision of EGoM in 2012, based on recommendations of TRAI, the auction process for this spectrum should have been started 18 months before the expiry. However, even though the validity of spectrum for 39 licenses issued into 2001 is expiring in July-September, 2021, and not even eight months are left before expiry no action has been taken so far," said the telco.