Salam
I had long been waiting for the de-regulation policy since I personally believe that PTCL’s structure has always acted as handcuffs on Pakistan’s progress. The reason I say this is that lets say a Pakistani wants to call US for business reasons. PTCL has forced him to pay Rs. 60 per minute, while he could have used an internet calling like net2phone etc. and paid Rs. 6. I remember hearing that PTCL had gone into deficit thus the ISP’s blocked this service.
I have to agree this policy is a good start. I am just hoping to get other people’s view, especially since most here are better aware than me.
I am no economics guru but government regulations are good as long as they promote consumer rights, diversity and fair competition. Their first law should be to disband monopolies, especially of the state-owned subsidiaries.
You can have as much competition as you want but the problem with Pakistan is how the licenses are disbursed. Cronyism and shell-ops controlling licenses will only jack up the prices until these companies/people are not allowed to get licenses.
Degas...Pakistan is not something extraordianry. All countries that have gone to Dereg in the telecom industries in the emerging markets face similar issues. before talking out of your ass, try to understand what this is about.
I have given you gyan from doing three deals in the last two years, two in China, one in India. Two of the three involved state run monops that had to sell some of the regional licenses, third involved a startup which wanted to get into the game after having acquired an int'l sub of a long distance carrier.
So whether you can use net2phone in pakistan is not the issue. The issue is how you can develop a market for multiple players, while promoting competition, market based price controls and tranparency in operations. Start with the last one.."transparency in operations"----who gets the licenses is the first hurdle in deregulating telecom.
[QUOTE]
*Originally posted by Matsui: *
Degas...Pakistan is not something extraordianry. All countries that have gone to Dereg in the telecom industries in the emerging markets face similar issues. before talking out of your ass, try to understand what this is about.
[/QUOTE]
I thought I read about Paksitan and its problem not any general developing country..
Monopolies stink they unfairly jack up prices and raise inefficiency in the market. In pakistan we need to seriously trim the government and get it out of various industries. I hope next it will be pakistan steel and various other sectors. The government should just concentrate on law and order, and radically change the judicial system.
but government regulations are good as long as they promote consumer rights, diversity and fair competition
With or without regulation the exact opposite happens in Pakistan
Pakistan was considered a model for economic success in the 60’s, in fact South Korea based it’s development model on Pakistan. It also had a superb private sectorwhich although was monopolistic and very Karachi centric was responsible for the economic book. Nowadays, Pakistan’s Public Sector Corporations still have laws, which for example prevent a private airline from operating on the same route that PIA does Nationally or doesn’t allow the private sector to use Pakistan Railways.
Regulatory authorities in Pakistan have failed, and regulation or deregulation won’t change official incompetence
