The Open Cartelization of Telecom Companies in India

India has now turned into a nation of “call drop”.

Talking on mobile phones is so much painstaking these days (from last 6 months at least).

Today morning I was going through an English daily where it was mentioned how the present Finance Minister of India Shri Arun Jaitly ji informed angrily to the visiting CEO of Vodafone Group that he now uses landline instead of mobile phones for talking.

A month ago same concerns was expressed by the present Communications and Information Technology Minister Shri Ravi Shankar Prasad ji. He also tried to placate public anger over ever increasing “call drop” menace by issuing warning to the telecom companies. But I’m just wondering what he actually did on ground despite having all the powers and despite H’ble Prime Minister of India Shri Modi himself expressed his displeasure on this issue.

So finally Cat is out of the bag.

In my opinion its an example of naked cartelization of telecom companies in India, which is running since more than last many years. They together plundered the scarce spectrum which the nation witnessed in the form of 2G scam.

Its hard to believe how these companies which once were offering 1 GB data for less than 100 INR now offering to its hapless customers same for nearly 500 INR. Very surprisingly the rates instead of coming down has increased manifolds while quality of service (at least voice service) has actually deteriorated.

Same is with the call rates. While initially it was way cheap with unlimited calling options for affordable 500 INR schemes, per second billing of 0.50 paisa, etc. and now it is to the tune of 1.2 INR per minute pulse. Why they have switched to per minute pulse rate when the whole nation is suffering from severe call drop menace and they should have remained stick voluntarily to per second pulse option (if they could have considered walking on way of being ethnical). They are clearly busy in looting their customers brazenly.

Like “crocodile tears” these companies air misleading TV ads on useless topics that their internet is 44% faster than average (why you just don’t get specific), or get idea song, or 4G network, etc. etc. But none talk about “call drop” problem or something meaningful.

More surprisingly how come all these companies have nearly same strategy of call rates/ plans/ top-ups/ packs/ etc.. Nearly every company is having very close call charges, data charges, etc. with almost negligible differences. How??

One may also wonder why state owned public company BSNL instead of doing a good business has always showed deliberate actions to shoot itself on its feet and having negative growth throughout last many years. Can’t anyone smell something fishy in all this??

It is also now apparently known that all these private telecom companies are using spectrum for more profitable data services at the cost of voice services. The end victim is poor customer who uses mobile for talking rather than buying thru apps. It also appears that TRAI instead of protecting customer rights is rather having hand in gloves with these private telecom entities.

Consider example of Automobile Companies competition pattern in India, they are doing far better business and value creation. Almost every company is working hard to bring great 4-wheeler or 2-wheelers for their customers. In last few years one can easily observe how thru R&D these companies brought great models with greater fuel efficiency, low cost, etc..

Clearly there is no cartelization in Automobile space. In case of telecom companies everything is none other than a naked cartelization.

Its a matter of concern that despite India now has a change in Central Govt. known for high ethical standards, this cartelization is still running without any brakes on it and Competition Commission is doing nothing when this cartelization is obvious.

Wake up companies until it gets too late and be ethical.



Published by Rishabh Agarwal


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