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the Telecom Circus....




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    We have been quiet on IPI for some time now.  I guess we have all
gone to see the Telecom Circus?  The recent clash between the Department
of Telecom (DoT) and Telecom Regulatory Authority of India (TRAI)
clearly shows that we are doomed!!  That is, we don't need a regulator
nor a rogue monopoly institution like DoT.  I believe that TRAI has
missed its golden opportunity to emphasize on the Free Market principles
and expose DoT's foul plans in the past and in the future.  Instead,
TRAI has chosen to regulate the tariffs - alas!!

    What the Government has done is to setup a regulator like TRAI to
battle against its own creation called DoT.  Much agony could be saved
if the Government looses the notion of "regulation" in the Telecom
Sector.  The Market Forces are more superior at deciding which companies
survive in the long-term and where the prices should be.

    While Telecom prices are falling rapidly around the world, India is
still struggling to provide basic Telephony to at least 2% of its
people!!  It can be argued that Market Forces in USA, France, etc. have
been allowed to improve the infrastructure in these countries and
greatly contributed to the drop in prices and increase in quality of
Telecom services.  This kind of Market catalyst is lacking in India.  We
have no concept of Market or Economics and hence continue to slip in our
mental models and think some institution come to our rescue.
Institutions have only held back the development and prosperity of
Indians and the sooner we realize this the sooner we will believe that
we should give the Market a chance before we erect a bureaucracy to do
its job.

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Sincerely,
Vamsi M.



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