Lok Sabha Question No. 385 (STARRED), answered on 2017-03-29
Subject: Competition in Indian Telecom Market
Ministry: COMMUNICATIONS
Asked by: K. MARAGATHAM

## GOVERNMENT OF INDIA MINISTRY OF COMMUNICATIONS DEPARTMENT OF TELECOMMUNICATIONS

## LOK SABHA STARRED QUESTION NO.385 TO BE ANSWERED ON 29 TH   MARCH, 2017

## COMPETITION IN INDIAN TELECOM MARKET

## *385. SHRIMATI K. MARAGATHAM:

Will the Minister of COMMUNICATIONS be pleased to state:

- (a) whether  the  Government  has  taken  note  of  the  reported  consolidation  among  the Indian Telecom Service Providers (TSPs) and if so, the details thereof and the reaction of the Government thereto;
- (b) whether  the  reported  consolidation  is  likely  to  yield  enough  competition  without causing fragmentation of spectrum and if so, the details thereof;
- (c) if not, the action proposed to be taken by the Government in this regard;
- (d) whether  the  Government  has  taken  note  of  the  alleged  anti-competitive  practices resorted to by some of the Indian TSPs against new entrants into the telecom market and if so, the details thereof and the reaction of the Government thereto; and
- (e) the action taken/being taken by the Government in this regard?

## ANSWER

## THE MINISTER OF STATE (IC) OF THE MINISTRY OF COMMUNICATIONS & MINISTER OF STATE IN THE MINISTRY OF RAILWAYS (SHRI MANOJ SINHA)

- (a) to (e) A Statement is laid on the Table of the House.

Contd…….2/-

## STATEMENT TO BE LAID ON THE TABLE OF THE LOK SABHA IN RESPECT OF PARTS (a) TO (e)  OF  LOK    SABHA  STARRED  QUESTION  NO.385  FOR    29 TH   MARCH,  2017  REGARDING 'COMPETITION IN INDIAN TELECOM MARKET '.

- (a) Department of Telecommunications recently has received following intimation/proposals regarding merger/demerger/acquisition/transfer of Licenses: -
- (i)    Acquisition of telecom business of M/s Sistema Shyam Tele Services Limited (M/s SSTL) by M/s Reliance Communications Limited (RCOM),
- (ii)    Merger  of  M/s  Augere Wireless Broadband Services India Pvt. Ltd. with M/s Bharti Airtel Limited.
- (iii)  Demerger of telecom business by M/s Reliance Telecom Limited (RTL) & merger into M/s Reliance Communication Limited in five License Service Areas,
- (iv)  Merger of M/s Telenor (India) Communications Limited with M/s Bharti Airtel Limited, and
- (v)    Merger  of  M/s  Vodafone  India  Limited  &  its  subsidiaries  with  M/s  Idea  Cellular Limited,
- (vi) Demerger of Wireless Telecom Business of M/s  Reliance Communication Limited & M/s Reliance Telecom Limited (RTL) and its consolidation with M/s Aircel Limited & Dishnet Wireless Limited.

Department  processes  the  proposal  as  per  guideline  and  instructions  issued  on merger and acquisition from time to time. Accordingly, Department has conveyed to take on record the following proposals of merger/transfer of business: -

- (i) M/s SSTL and M/s RCOM: On 22.03.2017 subject to fulfilling the conditions prescribed in the letter dated 22.03.2017. Both companies have yet to fulfil the prescribed conditions.
- (ii)  M/s Augere and M/s Bharti Airtel Limited: On 17.01.2017 subject to fulfilling the  conditions  prescribed  by  the  department.  These  conditions  have  been challenged  by  M/s  Bharti  Airtel  Limited  and  M/s  Augere  before  Hon'ble TDSAT.  Hon'ble  TDSAT  directed  the  department  to  take  on  record  the merger of M/s Bharti Airtel limited and M/s Augere and their licenses. The matter is under consideration.

The  proposal  of  demerger  of  telecom  business  of  M/s  RTL  is  under  consideration while other three proposals are at initial stage and yet to be approved by National Company Law Tribunal.

(b) & (c) The  consolidation  among  the  said  Indian  Telecom  Service  Providers  (TSPs) does  not  cause  fragmentation  of  spectrum  rather  it  allows  consolidation  of  spectrum  to provide better services by efficient utilisation of spectrum.  After the reported consolidation among the various Indian TSPs, there will be enough competition in the sector as six players are expected to remain in each service area in access service segment.

Contd….3/-

(d) & (e) The Government has received complaints of anti-competitive  practices  being resorted  to  by  some  service  providers  against  a  new  entrant  by  delaying  the  provision  of point of interconnection.  The provision of point of interconnection and congestion between the networks is governed by Reference Interconnection Offer (RIO) Regulation and Quality of Service (QoS) Regulation issued by Telecom Regulatory Authority of India (TRAI) and the mutual interconnect agreement signed between the operators. In a meeting held with TSPs on 01.11.2016, the Government directed all the operators to resolve their issues within the existing  regulatory  framework.    After  commencement  of  service  by  new  entrant  on 05.09.2016, the service providers have provided Points of Interconnections 'PoI' progressively. The Government has also received recommendations of TRAI for imposing a penalty on three  Telecom  Service Providers for delaying the provision of point of interconnection to another service provider. Telecom Commission has recommended to refer back the recommendations for reconsideration by TRAI.

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