E the concept of a margin squeeze is the firm demands

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permitted to change according to a set basket of telecommunication services. (e) The concept of a "margin squeeze" is the firm demands a price for the essential facility that is so high that it is not possible for an equally efficient retail stage competitor to operate profitably and the firm doesn’t charge its own downstream operations this high price. DT argues that its pricing practices cannot constitute a margin squeeze since wholesale charges are imposed by the regulatory authority. DT contends that a margins squeeze must be the result of excessive wholesale prices or insufficient retail prices. Others' contend that the margin squeeze is relevant to this situation since a competitor buys wholesale services from an established operator and depends on the established operator to compete in the retail market. Thus, a margin squeeze can exist between regulated wholesale and retail price. (f) Since the article ends in 2001, after that, the government or commercial institutions should get involved and provide market solution. The market may provide a technological solution by developing feasible substitute for the facility. The Govt. may
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require the vertically integrated firm to provide equal access to the essential facility to any firm that request access including competitor typically this means imposing non- exclusion and non-discrimination obligation on the owners of essential facilities. A price floor sets a minimum retail price for the incumbent’s retail services with reference to wholesale prices. A price floor should ensure that competitor are as efficient as the vertically integrated firms are able to cover their costs.
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