The Telecom Regulatory Authority of India (TRAI) has rejected the Department of Telecom's (DoT) suggestion to review penal decisions against Idea Cellular, Vodafone and others for the delays in providing interconnect points to Jio.
They said that these were willful and that a penalty was recommended only because revoking of licence would adversely affect a lot of consumers.
In an interview to CNBC-TV18, Nitin Soni of Fitch Ratings spoke about this development. He said the telecom companies will litigate against the penalty.
He said that they have downgraded Reliance Communications to B+ with a rate watch negative in December 2016.
They believe that post-transaction of selling off their tower stake and merging the wireless operations with Aircel is credit negative for RComm, said Soni.
Watch accompanying video for more details.
Disclosure: Reliance Industries, the parent company of Reliance Jio, owns Network 18 that publishes Moneycontrol.com.
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