[kictanet] Price Control in the Telecom Market in Kenya?

[Athar Ahmad Bhatti]

Why don't you analyse this from an ethical perspective:-

1) Is the competition currently in place beneficial to the common mwanainchi
? I believe the  answer is yes. Price wars help the majority as they can get
more for less.

2) Is putting a price floor useful to the common public ? Well you decide,
my view is that this will deny the public the right to cheaper quality
services. Isn't it human nature to purchase cheaper yet quality products.
You also deny the public the right to innovation that fierce competition
brings.

3) Can taxes be controlled/maintained due to price control floors? If i'm
not mistaken there is no relationship. My take is that with lower prices you
will speak for longer hours and thus still run up a bill that will assist in
adding to the tax kitty of KRA and the people at large.

The people defining these floors must consider  that it will be hampering
business development and the move would be ethically questionable as the
winners of such a move would be the minority and not the majority .

A word of warning: Putting a price floor on one product will open avenues
for other moguls to  apply for floors. Petrol, food, housing, clothing,
electricity, water ....

I hope you get the picture.

Thanks

Athar
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