Telecom giant Reliance Jio has questioned the government regarding the ‘inexplicable delay’ of the next spectrum auctions, and without more airwaves, the company added that there will be a serious drop in network quality.
The possible threat could result in the government losing revenue, according to a report by The Economic Times.
Jio has urged the government to organise the spectrum auctions at the earliest while other telecom companies - Bharati Airtel and Vi - are in no immediate hurry.
Jio has also alleged that these rivals - without naming them - have been opposing early spectrum auctions, have “amassed large amout of spectrum” through M&A and want to "stifle competition" while “perpetuating” 2G technology and monetising old equipment, the report added.
"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.
DH could not independently verify the letter.
The auctions, if held, will come after four years, and Jio said that this indefinite postponement has “created a situation of dire spectrum scarcity, which is impacting the quality of experience and growth of services".
The letter was addressed to telecom secretary Anshu Prakash, and copied to minister Ravi Shankar Prasad, PK Mishra, principal secretary to the PM, and other senior officials in the Digital Communications Commission on September 28.
"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," Jio said in its letter, seen by the publication.