COAI action on spectrum issue unwarranted: Anil Ambani

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Anil Ambani , Chairman of Reliance Communications said that the move of existing GSM players will curb competition, reports CNBC-TV18.

 

He added that the Cellular Operators Association of India , or COAI , action on spectrum issue was unwarranted.

 

Excerpts from CNBC-TV18's interview with Anil Ambani:

 

Q: What is your take on the entire spectrum issue?

 

A: The Cellular Operators Association of India, or COAI, action is not representative of the Indian mobile industry. There are eight or nine players, who operate on the mobility platform.

 

Initially, five companies out of nine took the matter to the Telecom Disputes Settlement and Appellate Tribunal, or TDSAT . I believe two of them have already withdrawn from the case and only three are left in this matter. So, clearly we have disassociated; being a member of COAI and a GSM operator in eight circles.

 

Others have also realized that this was an unwarranted, unnecessary and misguided action by the COAI, against the future of competition and the future of the consumer.

 

Q: There has been a lot of controversy around your going into GSM and getting spectrum over the other operators. What is your take on the regulation and how do you think it should pan out?

 

A: When you look at the propaganda by COAI, the reality is something that they do not want to recognize. The reality is that the licenses are technology neutral, they were upheld by TRAI and recommended to the DoT.

 

We were issued permission to operate on both the platforms and we have paid a fee of more than Rs 1,650 crore. Our spectrum eligibility date, which has been misrepresented by certain parties, is October 19, 2007. It is unnecessary, unwarranted and misleading propaganda.

 

Q: Do you think that the implications could derail your GSM plan?

 

A: We respect the judiciary process and see absolutely no reason. The entire approach of two-three players left in this petition, is to ensure that there is no new competition in the GSM space and stall any further stronger players from coming into this business.

 

If you look at what some of these players have done and practiced in the last three-six months, it is a visible sign of price fixation. They keep increasing their tariffs and changing their service cost parameters. I think this is anti-consumer from their perspective.

 

Q: What is the course of action you are going to take?

 

A: We have no course of action.