On Wednesday, the financial service company JP Morgan said that, Reliance Jio’s new Dhan Dhana Dhan scheme is “more aggressive” than the similar plans of its rival telecom companies like Bharti Airtel, Vodafone India and Idea Cellular.

JP Morgan also raised the concerned over ‘the unfair pricing by the sector regulator ‘ Telecom Regulatory Authority of India (TRAI)’ and identify the criteria that should be retained.

In an statement issued by New York based firms, which claims that “This new promotional scheme (Dhan Dhana Dhan) is more  aggressive than the high-consumption data plans which are offered by its rival. In general terms it seems similar to the ‘summer surprise’. Rather than explicitly calling its 90 days complimentary offer.”

The new scheme allows the consumers to take the advantage of 1GB and 2GB data plan every day for at least three months for Rs 309 and 509, respectively, which has brought the price of data at Jut Rs 3.25 per GB.

On March 31, Jio introduced it’s Summer Surprise offer which allow the subscribers to receive a internet data and voice for free of cost for 90 days, until July after registering with Prime Members for Rs 99 and Rs 303. TRAI ordered Jio tho immediately suspend this offer, by stating that it falls under special benefits that do not fit into the regulatory framework.

Beyond this offer, JP Morgan believes that TRAI has not explained its views on what it constitutes  aggressive and acceptable pricing strategy against what it constitutes an aggressive but unfair price.

The firm also warned that if the criteria for determining unscrupulous price aggression ere not determined or met, Jio could probably continue to leave even if it refuses free offers in the future.

The firm estimates that currently more than 60% of the telecom industry revenues now operate with the loss of PAT and nearly 25% of the industry is in EBITDA losses that this could help the regulatory distinguish unfair aggressive prices from an aggressive price regulator fair.

JP Morgan believes that Jio should not be viewed as an upstart, as the telecommunications company already takes that the lion’s share of data consumption and 4G data subscribers in this sector.

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