The Hindu Business Line : MRTPC issues notice to Airtel, Vodafone & Idea Cellular

Wrong call
The three GSM operators have simultaneously increased the price.
Local call charges fixed at Rs 1.20 per minute, STD rates increased by 10 pc on a few pre-paid plans.

Our Bureau

New Delhi, April 3 Monopolies and Restrictive Trade Practices Commission (MRTPC) has issued a notice of enquiry against Bharti Airtel, Vodafone Essar and Idea Cellular for allegedly forming a cartel to distort competition by increasing tariffs simultaneously. The case was taken up by MRTPC after the three companies announced similar tariff hike on a specific plan in August 2007. While local call charges was increased from Re 1 to Rs 1.20 per minute, STD rates were increased by 10 per cent on a few pre-paid plans.

The notice from MRTPC comes after its investigative wing the Director General of Investigations and Registrations (DGIR) report said that the three GSM operators, by colluding, have simultaneously increased the price. The report stated that despite having different cost factors, structures and profits, they all fixed the tariff of their local call at Rs 1.20 a minute.

Under Section 10 of the MRTP Act, 1969, cartelisation in any industry is prohibited and is defined as a “restrictive trade practice” as it imposes unjustified burden on consumers.

While Vodafone and Idea Cellular did not comment, Bharti Airtel spokesperson said, “Bharti Airtel has always been at the forefront of mobile revolution in the country by driving affordability and offering world-class products and services to the customers. We have led the mobile growth story by launching various innovative and affordable products such as ‘Lifetime prepaid’ and ‘Easy lifetime’ that made mobile telephony a household phenomenon.

“Over the last few months, we have further brought down price points e.g. – Lifetime prepaid starting at Rs 99. We remain fully committed to offering affordable products and services to our customers.”

Admitting the DGIR’s report, MRTPC’s Bench headed by Mr Justice O.P. Dwivedi started judicial inquiry against the operators. The Bench also directed the three companies to file their reply before it within four weeks.

The tariff hike has also been challenged in the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) by a consumer organisation. The Telecom Regulatory Authority of India has so far refused to intervene on the grounds that market forces should determine mobile tariffs.

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Bharti, Vodafone hike mobile tariffs

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