World of Industries

R-COM & IDEA IN TROUBLE ADD

The Advertising Standard Council Of India (ASCI)has pulled up 15 firms, including
telecom companies, for running misleading ad campaigns during July to October this
year. During the said period, the Consumer Complaints Council (CCC) of ASCI found
15 advertisers, including Reliance Communication and Idea cellular, FMCG player
Dabur and elder pharma and coaching centre Career Launcher,violating the council's
code.

Reliance Communication had to suspenda telivision commercial as it failed to substa-
ntiate its claim "with comparative data of other mobile services" that the company is
the "fastest mobile broadband service in India". When contacted, the company said it
is currently making modification in the TV commercial. "RCOM has already responded to
ASCI and is making necessary modification in the TV commercial,"a spokes person from
Reliance Communication said.

Another Mobile operator, Idea Cellular also had to modify itz commercial, which showed
people walking while talking on mobile phones, as ACSI upheld complaint from consumers
that it encouraged "unsafe act of walking while talking on the mobile phone".

"Some action sequences as depicted in the TV commercial, shows dangerous practices and
manifest a disregard for safety without justifiable reason," ASCI said.





AIRTEL RULES OUT PRICE HIKE

Bharti Airtel belives that it is a misconception that the auction of 2G spectrum will
raise the price of telecom services in India. "The cost of winning bids at auction will
have no effect on the price customers pay for the spectrum-based telecommunication ser-
vics. Pricing depends on the opportunity cost, not historical cost, the opportunity cost
of spectrum is independent of assignement technique,"

Bharti Airtel said in a communication to Trai. Trai, currently, is reviewing the various
telecom rules and is expected to come out with the final; recommendations shortly. Bharti
Airtel is in favour that the spectrum for 2G should be allotted only through auction.

Airtel said that as the operators compete with each other for customers, no operator can
raise service prices " above the level set by the market." It pointed out that in India,
various operators have acquired the license or telecom companies in a secondary market
after paying much higher price than the license cost. "However, it has not affected the
their capability to remain competative in the Indian market at all." Bharti Airtel added.