Airtel takes a jab at Reliance Jio over the proposed alliance between Vodafone and Idea

It was expected that the telecom sector will see consolidation so the recent statement by telecom operators Vodafone and Idea was hardly a shock. But country’s top telecom operator Airtel has something to say on this most recent development in the telecom sector. Gopal Vittal, CEO of Airtel says, “We welcome the news of the proposed alliance between Vodafone and Idea Cellular. Consolidation is always good, especially for any capital intensive sector with multiple players. A Few solid and profitable players are always better for an industry, as they can make substantial investments and offer quality products and services to customers in a sustainable fashion.”

Ever since Mukesh Ambani led Reliance Jio has entered the telecom space it has caused quite a disruption in the sector. Jio has been on loggerheads with the rest of the telecom operators over various issues including call interconnection and its free services.

Airtel took this opportunity to take a dig at Jio suggesting that the consolidation seen in the sector could indeed be a reaction to a certain position Jio enjoys in the sector. In the statement from the company, Vittal added, “it is important to ensure that such consolidations are not an outcome of a forced situation created by offering an ‘unfair playing filed’ to any particular company while completely destroying the viability of the others.”

Vittal also talked about how it is an “unfavourable situation” and can be bad for the sector, including the customers, employees, overall investment climate and revenues to Government.

Just like many telecom disputes, Jio’s free services matter is now at the telecom tribunal and a decision is expected on the same. As per the ‘Happy New Year’ plan of Reliance Jio, all consumers can avail all Jio services for free till the end of March.