Joseph Wilson, PhD presented the findings of the TRE study in Pakistan
Started with the industry outlook.
The mobile sector,
Mobilink licence was renewed last year from providing the service. The licence cost UDS 291 mn. The cost is the same for everyone. Paktel purchased by China mobile for USD 400 mn. Growth in mobile subscribers from 82.5mn to 89.5 mn. Teledensity is at 52.16. This is with the de-subscribed SIMS taken into account.
Fixed sector,
6 operators. Copper wire used for access. But Brain, Union and World call have very limited subscriber base. WLL part of fixed sector. 6 operators. Long distance International, 13 operators.
Broadband
130,281 subscriber, poor penetration due to high cost and low quality (low speeds). WiMax and Wireless Broadband services launched. FOur types of technology DSL 60%,…
The regulatory history has four phases, the first which was from 1964 to the 1989. PTT was established in 1964, this was a forerunner of DGPT. In 1985 DGPT gave operating licenses and were removed from the government budget. The second phase was from 1989 to 1999. The new Act of Telecom was established in 1989 that established DGPT as the policy maker and regulator. A new international operator (Satelindo) entered the market in 1993. In 1994 GSM licenses for Telkonsel and Indosat and two years later a private operator was granted a GSM license. The third phase was from 1999 to 2004. This was the period after the Asian financial crisis and proves to be the phase that was most revolutionary. A new Telecom…
The colloquium notes
Lara Alawattegama (LA): Monopoly means ‘a market with a single supplier’
Why a monopoly happens:
1. No close substitutes
2. Legal barriers to entry
3. Resource barriers
4. Unfair competition -predatory pricing
Rohan Samarajiva (RS) : Lack of competition leads to monopolies. Microsoft Windows is an example where none of the above characteristics applied
Chanuka Wattegam (CW): Is LIRNEasia a monopoly?
RS: What is LIRNEasia’s market?
No technical barriers for anyone to entry to the LIRNEasia market. So the answer is no.
LA: Natural Monopoly is what you get when the market is too small for a competitor to offer a lower priced product. (dis-economies of scale ) So a new firm may have to sell at a higher cost and will not be successful unless that adds value (i.e. improved technology).…
Tags: air travel, Alfred Kahn, AT&T, Colombo, electricity, Harsha de Silva, improved technology, Joseph Shumpeter, Lara Alawattegama, lower priced product, Microsoft, Rohan Samarajiva, shuttle services, Sri Lanka.
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