Operators dismiss cartel allegations

By agencies   |   Friday, 07 October 2005, 19:30 IST
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NEW DELHI: Reacting to the allegation made by the Union Communication and IT Minster, Dayanadhi Maran, that the three operators (Airtel, Reliance Infocomm and Tatas-managed Videsh Sanchar Nigam ltd) were functioning like a cartel, the long distance operators have said they were not opposed to allowing more competition, but wanted a level-playing field. The service providers said they had only requested the Center should follow a principle of ‘no worse off,’ while formulating a policy on long distance sector. The service providers are expected to officially communicate their response to the Minister by early next week. Earlier, the companies had made a joint response to the Minister seeking a compensation of Rs 2,800 cr for allowing new players in the long distance sector. Rejecting the demands for compensation, Mr Maran on Wednesday said: "These three operators are forming a cartel to prevent any competition in the long distance telephony. They want to form a cartel and prevent competition in the STD and ISD sector which will bring down the tariff for the consumers." Whereas, the operators said the companies had only expressed their concerns at lowering the entry fee for new players, and also against the proposed One India STD tariff being worked out by the Center for a uniform calling rates across the country. “No issues in facing competition. We also want benefit of the consumers. In fact, the Government should ask the new players to roll out into more areas instead of relaxing the roll out obligation," said a long distance player. On the issue the Telecom Regulatory Authority of India (TRAI) said it was prepared to examine the allegations, if the Centre referred the matter to it. Maran said that the telecom regulator must take action to break the cartel of operators in the international long distance services to bring down the cost of overseas calls. Commenting on this TRAI’s Chairman Pradip Baijal said: "We will examine it, look at data and give a reply. But the tariffs have gone down significantly in the last few years, and if there were a cartel, tariff would not have come down so much. It does not mean there was no cartel. One will have to examine that.”