Bharti Airtel, Vodafone, Idea to face CCI probe for alleging cartelization against Reliance Jio

NEW DELHI: The Competition Commission of India (CCI) has prima facie found that Bharti Airtel, Idea Cellular and Vodafone India had formed a cartel to deny Reliance Jio Infocomm adequate points of interconnection (PoI),

and ordered a detailed probe into the alleged unfair practice that led to major call failures on the network of the latest entrant into wireless phone services.

CCI has also ordered a probe into the functioning of the Cellular Operators Association of India (COAI), saying the GSM industry body was found to be promoting the interests of the incumbents Bharti Airtel, Vodafone India and Idea Cellular and allowing itself to be used as a platform for preventing Jio's smooth entry into the sector.

Airtel declined to comment on the order, saying it hasn't received any communication from CCI. "We have already stated that we have always responded with alacrity and provided a staggering quantum of PoIs to Reliance Jio in record time," an Airtel spokesperson said.

Jio had then complained that more than 75% of the calls on its network were failing due to inadequate PoIs, a barrier the new entrant described as an attempt by incumbents to sabotage its entry into telecom. The top three phone companies had refuted these allegations.

"After the Trai recommendations, the ITOs granted a large portion of Jio's requirement: Before this, only a small part was provided." Bharti Airtel too in February had filed a counter complaint with the anti-trust regulator against Jio, accusing it of "abusing its dominant position" and of "predatory pricing", with the intention to kill competition. Jio had rejected Airtel's contention.

Six years after getting 4G spectrum in 2010, Jio entered the telecom industry last September, with offers of six months of free services. Jio has followed up with offers at much reduced rates since April 1, bleeding competitors that tried to match them.