Bharti, Rel, Vsnl Deny Of Forming Cartel

[abhay 0]

Debunking a government charge about forming a cartel, India's top three private telecom players - Bharti, Reliance Infocomm and VSNL - today said their demand for level-playing field should not be construed as opposition to new entrants.

In a letter sent to the government on Thursday a day after Communication Minister Dayanidhi Maran accused them of forming a cartel these operators asserted that "We in fact compete amongst us in the market place."

"We are deeply concerned by the media reports and would like to clarify that there is no cartelisation," they said in the letter addressed to Mr Maran.

The minister had said "these three players are trying to stop competition in the long distance services. By allowing more players STD and ISD rates can come down further.

"They have formed a cartel and I am against this," Mr Maran had said.

The joint communication by Reliance Infocomm, Airtel and TATA’s-owned VSNL says that "their representations were restricted to the premise of level playing field and no worse off for the existing operators, the principle well recognised and supported by the government in the past."

"Our concern is permitting entry of the new operators by which existing operators are discriminated vis-a-vis new operators," the letter said.

All the three players have different pricing models for both STD and ISD calls and offer the subscribers’ freedom to choose any one of them. In such a scenario there can be no cartelization, they said.

[Utsav 0]

What is Cartel? A nexus or something alike?

[linuxguy 0]

Utsav,

Cartel : A group of companies or countries acting together to control the supply and price of certain goods or services. Cartels are formed to produce higher profits than would ordinarily be earned.

I fully agree with the government. VSNL, Airtel and Reliance are forming a cartel!!!!

[anujit 0]

They all have cartels. How do I know this. Well (at least in Kol) - the prices of Airtel & Hutch changed simultaneously, just like Coke & Pepsi's.

All this about not being a cartel is all hogwash.