economic times july 13, 2010
NEW DELHI: The corporate battles between mobile phone operators have now led to deep divisions in the Cellular Operators Association of India (COAI), the powerful industry lobby representing the interests of GSM-based telcos. Tata Teleservices (TTSL), the country's fifth-largest telecom company by customers, on Monday said it was resigning from COAI and accused the industry body of being 'undemocratic, biased, non-transparent and unethical'.
NEW DELHI: The corporate battles between mobile phone operators have now led to deep divisions in the Cellular Operators Association of India (COAI), the powerful industry lobby representing the interests of GSM-based telcos. Tata Teleservices (TTSL), the country's fifth-largest telecom company by customers, on Monday said it was resigning from COAI and accused the industry body of being 'undemocratic, biased, non-transparent and unethical'.
"We have found that COAI is not a transparent association and represents the views of only a few selected old players, as all powers/rights are vested in their hands," TTSL said in a letter to COAI's director general Rajan Mathews. Tata Telservices also said that it 'does not wish to continue associating with an association which just doesn't seem to be able to work in a just and equitable manner'. "We, hereby, formally tender our resignation as core member of COAI," its communication to COAI said.
The Tatas had joined COAI in early 2008 after it had obtained licences to offer pan-India GSM services. Their exit means that both telcos - Tata Teleservices and Reliance Communications - which hold dual licences are no longer members of COAI. Reliance Communications, too, had withdrawn from COAI last year alleging that the industry lobby represented the interests of only large GSM players.
The Association of Unified Service Providers of India, the industry lobby for CDMA and dual licence holders, now represents both these mobile phone firms.
But, COAI's director general Rajan Mathews told ET that Tatas were conflicted as they were members of both the telecom industry associations.
"They (Tatas) felt that COAI was not supporting them on their CDMA business. It is natural that an industry body representing GSM players will not support the demands of CDMA operators. We feel that the Tatas are frustrated that their CDMA business is not doing too well and they wanted to use COAI as a punching bag so that they don't have egg on their face," Mr Mathews added.
COAI now has GSM majors Bharti Airtel, Vodafone, Idea Cellular and Aircel as its core members. Bharti Airtel CEO Sanjay Kapoor was elected chairman of COAI last week.
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