At a time when the Telecom Regulatory Authority of India (Trai) is busy contemplating whether to recommend a cap on the number of mobile service providers in a telecom circle, the Competition Commission of India (CCI) is keen that the issue be left to market forces. Limiting the number of players is akin to thwarting competition, the CCI feels.
In effect, the CCI will advocate the present position of the government?which does not limit the number of players in a circle. CCI also feels that the 2G spectrum pricing policy of the government should change to encourage more optimal utilisation. At present, operators pay an entry level fee for 2G spectrum followed by a revenue share. However, the industry is split whether operators should be asked to bid for spectrum through an auction system.
CCI member Vinod Dhall is scheduled to meet the Trai chairman Nripendra Misra on Friday to discuss the issues.
Trai, which has completed the consultation process on the subject, is now in the process of formulating its recommendations that would be sent to the department of telecommunications (DoT), which will take a final decision.
However, the GSM industry body, the Cellular Operators Association of India (COAI) has advocated a review of the present policy of allowing unlimited operators and has favoured a cap.
Sources said the CCI stand against restricting entry of new players was based on the fact that only a competitive market would result in breaking possible cartels.
Though yet to be functional pending an amendment bill, the CCI has been conducting studies on market conditions in various segments of the economy and has been largely undertaking an advocacy role.
The DoT had sought the views of Trai on the matter purely on the basis of scarcity of spectrum arguing that more number of operators mean less spectrum to each one of them than required, which leads to poor quality of service.
On spectrum, CCI feels that realistic pricing would ward off non-serious players and lead to effective and efficient utilisation of the spectrum, where demand is more than the existing availability. When contacted, Dhall refused to comment on specific queries. Misra said Trai would take note of CCI views.