The AT&T
Company of USA having market share of 27% in mobile services came to an agreement
to acquire another mobile services company T-Mobile so that the combined entity
will have 44% market share. The US Department of Justice filed a suit in the
Washington DC District Court against this on the ground that it will lead to
“higher prices, poorer quality of services, fewer choices and fewer innovative
products for the millions of American consumers who rely on mobile wireless
services in their every day lives”. Finally, the AT&T was compelled to
cancel the acquisition agreement with T-Mobile.
But in India,
the TRAI proposed for allowing mergers and acquisitions in such a way that the
combined entity can have a maximum market share of 35% without approval and upto 60% with
approval. This was almost approved by the Telecom Commission. When in America,
the acquisition of T-Mobile by AT&T resulting in a total market share of
44% for the combined entity was opposed by the Government and finally stopped,
why in India the maximum market share of 35% should be allowed automatically
and upto 60% with approval?
The Government
should ensure a fair competition in the telecom services sector by ensuring
that no company will have more than 20% market share. Allowing upto 30% share
in the market is allowing monopoly and hence should not be allowed
కామెంట్లు లేవు:
కామెంట్ను పోస్ట్ చేయండి