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CCI to conduct study on the telecom sector: report

A telecom tower

The Competition Commission of India (CCI) will conduct a study to assess various competition aspects in the telecom sector, reported The Indian Express last week. CCI Chairman Ashok Gupta said that the regulator has started preparatory work and is expected to commence in November, per the report.

Why will CCI conduct this study? Gupta said the market dynamics of the telecom sector have undergone significant changes in the recent past and this study would give them insights into what the sector needs to be watchful of, and what actions they need to take afterward.

What the study will do:

  • Enable the commission to craft a competition advocacy strategy and recommendations according to sector demands
  • Gather relevant information and data from the stakeholders to provide a clear understanding of the developments in the telecom market.

How will this study help? It would analyse markets that are closely connected with the telecom markets and would look for prevailing competition landscape, patterns of consumers and business behaviours, the impact of regulatory and policy developments on competition and interplay amongst markets.

It’s worth noting that India’s telecom sector has witnessed disruption, particularly following the entry of Reliance Jio. Price disruption in the sector impacted financials of telecom operators such as Bharti Airtel, and led to the merger of Vodafone and Idea. Gupta told that it’s crucial for CCI to keep an in-depth watch on the developments in the telecom sector, because telecom providers are in a critical state and there is an overarching interface across the economy.

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