Apple's much-awaited Watch series 3 with cellular support was released in India earlier this week. The analysts feel Jio's new plan could move some postpaid, corporate accounts, that account for large chunk of revenues of the incumbents.
Reliance Jio further added that locating the e-SIM provisioning node outside India will lead to the national security breach and also termed the issue as "deliberate and gross violation" of Unified License terms and conditions.
eSIM stands for embedded SIM and is also known as eUICC (Embedded Universal Integrated Circuit Card).
Once paired, Apple Watch can work as a standalone telecommunication device, as it can catch radio signal by itself.
To offer a such a seamless connectivity service without any issues, carriers such as Airtel and Reliance Jio offer a dedicated network node.
Reliance Jio has filed complaint against Bharti Airtel with the DoT, alleging that the telecom major is offering eSim service on Apple Watch Series 3 in violation of licence norms and demanded immediate closure of the service. Post-paid subscribers albeit restricted to 5-6 percent for Bharti Airtel and IdeaVodafone, represent around 20 percent of their portable income, the CLSA report said.
"Airtel has deliberately chosen to install a critical network element outside India for a service being offered under the Access Services License indicates its blatant disregard for the sanctity of the license terms and conditions including important security conditions", said Jio in the statement seen by ET.
"We (Jio) request your good office (DoT) to take severe action against M/s Bharti Airtel Limited and impose the strictest of penalties under the License".
The BSE Telecom index was trading 4.03 per cent down at 1,219 around 12:40 pm.