TRAI Said Jio's To Withdraw Their Summer Surprise Offer

TRAI Said Jio's To Withdraw Their Summer Surprise Offer

Under Jio's 'Summer Suprise' offer, consumers got free voice and data services for three months, depending on when they signed up. TRAI said this offer was not legally.

NEW DELHI: The telecom watchdog said Reliance Jio Infocomm's Summer Surprise plan, which offered complimentary benefits for three months, did not fit into the "regulatory framework," prompting it to order the company to stop the plan.

"On April 1, we had asked for certain details from Jio and then on April 5 had called a meeting. We have discussed the offer in which they are asking customers to recharge with Rs 303 (or more)," Sudhir Gupta, secretary, Telecom Regulatory Authority of  India (TRAI), told reporters Friday. "The explanation which was given to us by Reliance Jio was not able to explain where this complimentary special benefit fits into the present regulatory framework."

Officials at rhe Mukesh Ambani-owned company reiterated that the Surprise Offer was legally compliant but Jio would be following with the order, which was first conveyed verbally on Thursday.

Under the offer announced on March 31, all Jio Prime members making their first recharge of Rs 303 (or more) by April 15 got three more months of free voice and data services, besides access to other Jio apps. Ambani had announced Prime membership on February 21 for a one-time fee of Rs 99. The Prime membership, available for one year, gave customers the option to choose from multiple data packs starting from Rs 149 on wards.

While the move dashes the company's aim of rapidly adding to its subscriber base, more rational pricing will likely be restored in an industry plagued by a rate war triggered by Jio's entry, which has led to a sharp fall in government revenue from licence fees and spectrum usage charges.

TRAI appears to have taken suo moto note of Jio's latest offer as gupta said the company hadn't filed the new tariff scheme with the regulator, which it is mandated to do within seven days after launching the plan.

"The new offer is a special benefit which is not falling into the regulatory framework," the official said."We are saying to stop it in the shortest possible time and it can be few hours, a day or a day and half but it can't be April 15."

Jio said it is in the process of complying with the advice and will be withdrawing the benefits as soon as operationally feasible," over the next few days."

Staff at Reliance Digital stores in Delhi and Mumbai visited by ET reporters told customers that the offer will be wound up by the end of Friday.

"There is no way to advertise since overnight printing would not have been possible. So, we are resorting to writing messages on plpacards and putting them up," a Mumbai retailer said.

Following TRAI's order, Amit Bhawani, a Hyderabad-based techie started the Change.org petition calling yesterday "a black day."

"Today (April 7) is a black day for Digital India. The Indian Consumers who with your support, once fought and won the battle for net neutrality; today are on the verge of losing out on affordable access to the internet," Bhawani's petition said.

To be sure, Jio's free data offer was criticized by its competitors in an industry plagued with a rate war triggered by Reliance Industries owned firm, reported The Economic Times(ET). In addition, Jio's entry also led to sharp fall in government revenue from licence fees and spectrum usage charges, ET also said.

Those are not the concerns of the Change.org petitioner. Bhawani believes that what TRAI's order means is more expensive data for the common man.

Here the link to petition.

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