CCI TO PROBE AIRTEL, VODAFONE & IDEA FOR UNFAIR BUSINESS WAYS
The Competition Commission of India (CCI) has ordered a detailed probe against major telecom players for allegedly trying to block the entry of newcomer Reliance Jio, according to sources. The fair trade regulator’s decision comes on a complaint filed against leading incumbent players — Bharti Airtel, Vodafone, and Idea Cellular — and the industry body Cellular Operators Association of India. A senior official said the regulator had decided to investigate allegations of unfair business practices made against these telcos.
The Competition Commission of India (CCI) has ordered a detailed probe against major telecom players for allegedly trying to block the entry of newcomer Reliance Jio, according to sources.
The fair trade regulator's decision comes on a complaint filed against Bharti Airtel, Vodafone, Idea Cellular, and Cellular Operators Association of India (COAI).
A senior official said the regulator has decided to investigate allegations of unfair business practices made against the telecom players.
Sources said the regulator would also examine the overall conduct of COAI, especially since allegations of anti-competitive practices have been made against three of its key members.
The probe by the director-general (D-G) has been ordered for allegedly trying to restrict the entry of Reliance Jio, the official added.
D-G is the investigation arm of CCI. Cases where the watchdog finds apparent evidence of competition norms' violations are referred to D-G for detailed probe.
When contacted for comments on CCI ordering the probe, an Airtel spokesperson said, "We have not received any such communication from the CCI and would, therefore, not be able to comment."
"We have already stated that we have always responded with alacrity and provided a staggering quantum of PoIs (point of interconnections) to Reliance Jio in record time," the spokesperson added.
Emails to Vodafone, Idea Cellular, and Reliance Jio did not get any response.
"Though we have not seen the order as it has not been published yet, we are disappointed at the apparent news (if confirmed), that the CCI has decided to go forward with an investigation into the complaint filed by Reliance Jio," COAI director-general Rajan Mathews said.
"We believe the COAI and its members will be fully vindicated in the matter and truth will prevail," he said.
Last year, billionaire Mukesh Ambani's venture Reliance Jio stormed into the Indian telecom market — the second-largest market globally with 1.2 billion subscribers — with disruptive offerings and has since been at loggerheads with other players.
Reliance Jio had accused other players of not providing sufficient network connectivity (leading to call failures on its network) while the latter countered the claims saying the newcomer was unleashing a "tsunami" of free traffic from its mobile network.
The two sides have also clashed on other issues like free voice and data offers, and customised retention plans.