Saturday, December 21, 2013

Thou Shall Not Compete

Ministry of Telecommunication, Public Announcement
18 December 2013 

The Ministry is worried about the lower prices for phone calls that it says violate the WTO regulations. Do they, really? Do the WTO regulations really encourage the Ministry’s floor price fixing?

The Ministry says the pricing war lowers service quality. It implicitly assumes the market is not capable of knowing and choosing between a bad service that costs less and a better service that costs more. Is the public really that stupid? Usually, the market will sooner or later send poor service providers broke, no matter how cheap they are.

Anyhow, if the Ministry is worried about consumer complaints over poor service of a particular provider, why can’t an appropriate regulation deal one-to-one with the service provider, rather than fixing the floor price that affects everyone? Read more click here