The Hindu Business Line : Long distance operators dismiss cartel allegations

LONG distance operators Airtel, Reliance Infocomm and the Tatas-managed Videsh Sanchar Nigam Ltd have said they were not opposed to allowing more competition, but wanted a level-playing field.

Reacting to allegations made by the Union Communication and IT Minister, Mr Dayanadhi Maran, that the three operators were functioning like a cartel, the service providers said they had only requested the Centre should follow a principle of `no worse off,' while formulating a policy on long distance sector.

The three companies are expected to officially communicate their response to the Communication Ministry early next week. Earlier, they had made a joint presentation to Mr Maran seeking a compensation of Rs 2,800 crore for allowing new players in the long distance sector, with lower entry fee and relaxed roll out obligation.

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."

One of 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 Centre which envisages uniform calling rates across the country.

"We have no issues in facing competition, but only if the playing field is level. 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.

Meanwhile, the Telecom Regulatory Authority of India (TRAI) today said it was prepared to examine the allegations, if the Centre referred the matter to it.

"When the question comes, 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 was a cartel, tariff would not have come down so much. It does not mean there was no cartel yesterday and today also there will be no cartel. One will have to examine that," said the TRAI Chairman, Mr Pradip Baijal.

Mr Maran had said on Wednesday 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.

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