Bharti, Vodafone-Essar now under MRTPC scanner

NEW DELHI: After landing in trouble at telecom tribunal TDSAT, two of the country's biggest mobile players Bharti Airtel and Vodafone Essar have now come under the scanner of anti-monopoly watchdog MRTPC which has ordered a probe into their suspected cartelisation in raising tariffs.

The Monopolies and Restrictive Trade Commission has directed its investigative arm Director General of Investigation and Registration (DGIR) to conduct a probe into the manner in which the companies raised tariffs last month. The Commission suspects these companies have formed a cartel and are distorting competition in the market, sources said.

MRTPC took suo moto cognizance of newspaper reports over the price hike, sources said, adding the tariff hike was almost simultaneous and the Commission suspects that it was a coordinated action. Another leading telecom player Idea Cellular may also be included in the probe later, they said.
   
The Commission's action comes days after Telecom Disputes Settlement and Appellate Tribunal (TDSAT) pulled up sector regulator TRAI for not intervening in the issue of price hike by the three telecom operators. While hearing a petition by an NGO Telecom Watchdog, the tribunal had also said the matter had a direct bearing on consumers.

The companies last month raised tariffs for STD, local calls, SMS and value-added services. But while even a small cut in rates is announced with fanfare, they refrained from publicizing the tariff hike and brought out customary notices by way of small advertisements tucked inside newspaper pages.

The three companies control around 86 per cent of the GSM-based mobile services market and raised local call charges by 20 per cent and STD charges by 20-32 per cent.