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Tatas accuse Reliance of killing competition

Thomas K Thomas in New Delhi | July 08, 2003 11:30 IST

Tata Teleservices has accused Reliance Infocomm of anti-competitive practices by locking in customers of its limited mobility services for a period of three years.

In a letter to the Telecom Regulatory Authority of India, Tata Teleservices said the Reliance Infocomm offer "constitutes a major barrier to growth of the WLL (wireless in local loop) services in India and destroys competition in the services and restricts the freedom of the consumers from shifting from one service provider to another".

Under the Dhirubhai Ambani Pioneer offer, Reliance Infocomm charges customers Rs 3,300 for signing up and Rs 600 a month for three years. This includes call charges and handset.

Reliance Infocomm executives said this particular tariff scheme was cleared by Trai and if there were any issues they could be taken up with the regulator.

The letter follows the recent arrest of Tata Teleservices executives in Andhra Pardesh on charges that the company was "illegally" wooing away Reliance customers.

Tata Teleservices has written to Trai that "if service providers and customers were to be threatened by such criminal proceedings, (they) would be able to tie in their customers for various lengths of time."

Tatas Teleservices further said Reliance Infocomm's efforts to lock in subscribers would generate supra-competitive profits for the company at the expense of customers.

The letter urges Trai to issue a directive that will review unfair schemes that adversely impact competition and the customer's right to freely migrate from one service provider to another.

Tata Teleservices also said Trai should bar all service providers that adopt means such as "locking" of handsets to dissuade subscribers from migrating to another service provider.


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Number of User Comments: 35




Sub: TATA\'s are known to be fair game players

Its a well known fact that TATA's are known to be fair game players, unlike Reliance who makes a HHOOOO HAAAAA about everything and dont ...


Posted by piryanka





Sub: Reliance Plans explained

I think this needs to be clearly written everywhere. It is clearly mentioned on the site. 501 offer : You get the phone to use ...


Posted by MJ





Sub: losers just want to cry

Cellular operaters are just crying because now they dont have the chance to cheat people as they were cheating with high tariff rates.When somebody wants ...


Posted by surya





Sub: Tatas are spoiling their own image

It is really bad on the part of the Tatas to attempt to Tamper the Reliance handsets as it appeared in news. Having done this ...


Posted by kans





Sub: Privatisation of Teleommunications in India

Perhaps, inadequate spade work by expertise is responsible for all the present confusions in the services provided and the tariffs offered and consequent chaos experienced ...


Posted by B.Gautam




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