Reliance Jio's new pricing will continue to bleed industry,says COAI

Reliance Jio's new pricing will continue to bleed industry,says COAI

Cellular operators' body COAI has said Reliance Jio's latest pricing will continue to bleed the industry and there is risk of cascading impact on banks and others that have large exposure to the telecom sector.

COAI said that while market's move towards lower pricing is good for consumers, the larger question of whether such pricing confirms to tariff regulations is a matter that needs to be settled by the courts and the telecom tribunal.

"The industry will continue to bleed under this pricing, and there is the risk of cascading impact on the banks, government (accruals from licence fee and spectrum payments made by telcos), and equipment manufacturers," COAI director general Rajan Mathews said.