Monday, April 07, 2008

India - cartel accusation rejected

Sunil Mittal denies forming cartel with other telecom players

Telecom major Bharti Group Chairman and Managing Director Sunil Bharti Mittal on Monday denied any attempt on forming a cartel with other telecom players to distort competition.

Mittal was reacting to a 'notice of enquiry' by anti- monopoly watchdog MRTPC last week against three big telecom operators -- Bharti Airtel, Vodafone Essar and Idea Cellular -- for allegedly forming a cartel to distort competition.

Earlier this month, the Monopolies and Restrictive Trade Practices Commission (MRTPC) Bench had directed the three companies to file their reply within four weeks.

In the investigation report, Director General of Investigations and Registrations (DGIR) has said that the three GSM operators, by colluding, have simultaneously increased the price.

"Pricing of mobile and tariffs has been constantly coming down.... so what cartelisation we are talking about here," Mittal told reporters on the sidelines of a conference here.

"Look at the last 13 years, the entire industry tariffs have been flowing in one direction, if I reduce tariffs today others will also follow, so there is no question of cartelisation," he added.

On the mobile virtual network operators (MVNOs), Mittal said with the kind of tariffs we have in India no such operators can work here.

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