COAI fears cartelization due to limited number of telecom players


New Delhi, Sep 13 (PTI) Industry physique COAI has sought to allay fears of cartelization due to a limited number of Telecom players, saying the operators are listed firms acutely aware of their model worth and the sector regulator retains a good vigil.

“…the three private players are (or belong to) listed Companies…they are very concerned about their brands. They have built up the value of the brand through years of integrity and looking after customers…and they are not about to throw it (away),” COAI Director General Rajan Mathews informed PTI.

He was responding to a question on whether or not three giant personal sector players left within the fray post-consolidation might set off fears of a doable cartelization.

“The brand value is so high and so important for conducting business in terms of getting the necessary funding from financial institutions that one cannot afford to indulge in these type of shenanigans that will dilute, distort or disrupt the value of fundamental assets,” Mathews argued.

Attracting funds for investments will hinge on safeguarding the model worth, and banks will invariably have a look at the integrity of the establishment whereas lending, Mathews added.

“…we expect that the regulator will keep a vigil on what is going on…so the fears in terms of cartelisation are unfounded,” he mentioned.

On August 31, Idea cellular Ltd and Vodafone Plc introduced completion of the USD 23.2 billion (roughly Rs 1.6 lakh crore) merger of their India operations, creating the nation’s largest Telecom operator to tackle competitors from Reliance Jio.

The merged entity — Vodafone Idea Ltd — with a subscriber base of over 40.eight crores and market share of over 35 % shuffled the business’s high deck, dislodging Bharti Airtel from its numero uno spot.

Telecom Secretary Aruna Sundararajan has exuded confidence that the Vodafone-Idea cellular merger will pave the way in which for a “good competitive scenario” in India.

“We expect that with this merger, the market will begin to stabilize. We expect to see robust growth in the Telecom sector with the emergence of three strong private sector players, and one public sector player,” Sundararajan had mentioned earlier.

The Telecom sector has witnessed a spate of consolidation geared toward discovering economies of scale after Reliance Jio plowed USD 25 billion right into a pan-India nationwide 4G knowledge service, providing free voice name and tariffs properly under prevailing charges. Jio has amassed 230 million subscribers in two years of its launch.

Bharti Airtel fired the beginning gun with the acquisition of the Indian enterprise of Norway-based Telenor. It subsequently introduced the takeover of shopper cellular Companies of Tata Teleservices Ltd (TTSL) and Tata Teleservices Maharastra Ltd (TTML).

(This story has not been edited by Devdiscourse workers and is auto-generated from a syndicated feed.)

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