CORRECT

Context: Competition Commission of India (CCI), in a recent study, assessed the level of competition in the telecom sector and came up with recommendations.

Regulatory issues in the telecom sector:

• Predatory pricing: Telecom Regulatory Authority of India (TRAI)has had a stormy relationship with the telecom sector over predatory pricing allegations against Reliance Jio.
  • The CCI looks at “dominance” benchmarks to determine if there is any violation of the Competition Act.
• Disagreements about reserve price for 5G spectrum: TRAI recommended a steep reserve price which was opposed by telecom service providers.
• Scarcity of airwaves raises costs and makes operations inefficient.

Ways to ensure growth in the telecom sector: based on recommendations of CCI

• Better communication between various stakeholders: Including the industry, the regulators — the TRAI and the CCI — and the government. 
• Provision of 5G spectrum at reasonable rates: The amount of spectrum allocation will determine the quality of 5G offers and will make the market competitive.
• Regulator should interfere only if it is necessary: E.g. Jio’s pricing strategy did not merit regulatory attention as Jio cannot be classified as predatory based on TRAI’s definition.

Conclusion: CCI recommendations will keep competition alive and provide a level-playing field for the welfare of consumers.