price fixing Archives — LIRNEasia


It started with something innocuous. Within a very short period of around a week all the mobile operators in Pakistan announced they would charge 10 Paise for balance inquiries. The Competition Commission of Pakistan naturally initiated an inquiry. The mobile operators said there was no price fixing and that this move was intended to reduce the overuse of this service. But then someone turned up with copies of emails showing the existence of a CEO Forum and details on discussions of prices, not only for balance inquiries, but for other services as well.
Unlike in Asia, the price of an individual SMS has increased by 100% to USD 0.20 in the US.  This has happened at the same time as the mobile market consolidated from six suppliers to four.  Naturally, there has been public-policy concern.  In defense of the telecos, it must be noted that most people in the US do not pay on a per-message basis, but get a “bucket” of services including a large number of SMS for a fixed price, so the per-message price is really not relevant to most people.