The Competition Commission of India (CCI) has dismissed Bharat Sanchar Nigam Limited?s (BSNL) allegations that Bharti Airtel, Vodafone India and Idea Cellular formed a cartel to bid for 3G spectrum in 2010.
CCI has turned down BSNL?s complaint on grounds that it did not find any prima-facie evidence of cartelisation among the three private operators. Earlier, BSNL had alleged that the three operators had bid selectively for the 3G spectrum in 2010 and entered into illegal roaming arrangements (ICR) to secure roaming rights in regions where they did not hold 3G spectrum. Further, BSNL claimed that the three operators during the 3G auctions, coordinated in such a way that rather than competing against each other, the players ensured that at least one of the operators amongst them won spectrum every circle.
Turning down BSNL?s complaint, CCI has noted that Bharti Airtel, Vodafone India and Idea Cellular won 3G spectrum in 13, 11 and 9 service areas respectively out of the total 22 circles. Had the three operators formed a cartel, the total number of licences obtained would have been 22 and not 33.
According to CCI, it was natural that most of the operators had wanted to bid for the high revenue circles particularly metros. Therefore, an adverse inference cannot be drawn against bidders for not bidding for all circles. Commenting on BSNL?s allegation that the three operators have entered into illegal ICR pacts, CCI has stated that the agreements between the companies, relating to inter and intra-circle arrangements, are to be considered in the light of terms and conditions of licence granted to them. Moreover, the issue of ICR pacts is currently under litigation as operators have approached the Telecom Disputes Settlement and Appellate Tribunal, High Court and the Supreme Court.
