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Breather for 3 mobile players on tariffs

Our Bureau

New Delhi, July 15 In a breather to cellular operators Bharti Airtel, Vodafone Essar and Idea Cellular, the telecom tribunal, on Tuesday, disposed petitions challenging a tariff hike by the three major telecom players in August 2007.

Dismissing the plea filed by a consumer group, Telecom Watchdog, the Telecom Dispute Settlement Appellate Tribunal said, “Today, the factual position is that such rates and rates of other telecom services have drastically come down. Thus, this petition has become infructuous and is accordingly disposed of.”

The case dates back to August 2007 when the three companies increased local calls rates in a few packages from Re 1 a minute to Rs 1.20 each minute. The companies also raised SMS rates to Rs 1.20 from Re 1. Telecom Watchdog had alleged that the operators were acting as a cartel by simultaneously announcing a similar tariff hike. The telecom regulator had refused to intervene in the case on the grounds that tariffs for mobile services were left to market forces.

During the proceedings in the telecom tribunal, counsels appearing for the three operators submitted that the tariff hike by the companies in August last had become a thing of the past and current prices were much below the rates challenged in the petition. They added that after issuance of new licences by the Department of Telecom, the sector is now gearing up for more competition and prices would further come down.

The Monopolies and Restrictive Trade Practices Commission is also investigating the tariff hike independently.

More Stories on : Telecommunications | Regulatory Bodies & Rulings | Courts/Legal Issues

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