CCI seeks details of spectrum trading deals from operators

Fair trade watchdog CCI has sought details from Reliance Jio and Bharti Airtel about their respective telecom spectrum trading deals as it seeks to ensure that these transactions do not hurt competition in the market.
Sources said CCI has written to Reliance Jio and Bharti Airtel, with regard to their spectrum trading deals with RCOM and Aircel respectively, asking them to submit all relevant details pertaining to these transactions.
The two companies have been asked to submit the required details within respective deadlines given to them, sources said. Queries sent to Reliance Jio and Bharti Airtel on whether they have submitted the details to the CCI remained unanswered.

The Competition Act provides that the companies need to submit details to the CCI of all major business combinations proposed by them and take its approval, but such transactions have mostly been mergers and acquisitions and it is the first instance of spectrum trading deals being looked into by it.
Sources said other telecom operators may also be asked to provide these details to CCI for such transactions, while adding that there was a possibility that CCI in future may even look into the spectrum sharing transactions.
Competition Commission of India (CCI), which keeps a tab on unfair business practices across sectors, is believed to be currently focussing on whether the pact for spectrum trading activities could adversely impact competition in the relevant market.

Mukesh Ambani-led Reliance Jio, which is yet to formally launch commercial operations, has entered into a spectrum trading pact with younger sibling Anil Ambani's Reliance Communications.

On the other hand, telecom major Bharti Airtel has struck an agreement with rival Aircel for spectrum trading.
These deals come against the backdrop of rising competition in the telecom space which is expected to further intensify with the entry of Reliance Jio.
CCI has powers to seek information from entities to check possibility of unfair business practices on suo-moto basis or based on complaints.