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

[Barrack Otieno]

Athar, how will the mobile companies invest in areas considered
unprofitable? througgh government subsidies? i guess no..

On Thu, Feb 17, 2011 at 4:52 PM, Athar Ahmad Bhatti <atharab at gmail.com>wrote:

> 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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