India's COAI Objects to Preferential Treatment for State Owned Companies
Published on: 13th Jan 2014
By: Ian Mansfield
The trade group representing India's GSM network operators has expressed concerns over a proposal that would require government bodies to only buy mobile services from the two state owned networks.
Suggested again last week, the move was suggested as a way of propping up the finances of the two struggling companies.
The COAI said that "that any such move would be arbitrary, incorrect and unjustified and would be anti- competitive and against all principles of level playing field,"
If implemented, then Central Government Ministries/Central Government public sector undertakings and autonomous bodies would be required to give preferential access to the state-owned networks ahead of the private companies when tendering for phone services.
The COAI said that the proposal not only causes a distorted marketplace, it could be unconstitutional.