In a rare letter to the Telecom Regulatory Authority of India (Trai), Mittal said IUC — which was well below cost at 14 paise a minute — had no relation to tariffs levied on consumers.
The relief measures could also include allowing spectrum to be used as collateral for loans, a move that was permitted by the RBI in 2012 but opposed by the telecom department.
According to Kotak, any pre-installed apps on a device that prevent consumers from installing competing apps “flirts with the boundaries of net neutrality“.
Experts say that among the players with stakes in the feature phone segment, a large player like Samsung – may be able to reduce prices of its feature phones.
Most of the handset makers, according to experts, may now form more partnerships with telecom service providers to take on Jio.
"We had a detailed discussion on this. Fixing a floor price was not a workable idea. Prices as they are under forbearance should continue as they are," Trai Chairman said.
Jio wants the 14 paise per minute charge to be scrapped and said it would provide 99% coverage in the country by year-end even if the IUC is dropped.
Any change in IUC has a direct impact on mobile call rates as the charge is taken into account while setting telecom tariffs.
The move would create a duty differential in the current tax regime which was being offered pre-GST by imposing a countervailing duty of 12.5% on imports.
Consultations could stretch out to late this year or early next, rendering any sale in FY18 a remote possibility, going by the time taken for previous auctions.
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