another example of an embarrising Government....

[vamsi@siliconcorp.com]

    Recently, DoT has rejected the tarrif cut for leased lines sighting
several reasons.  I would align with TRAI and against DoT even on a bad
day.  However, both TRAI and DoT are butting heads over a chronic
illness plaguing the Indian Economy.

    The 1994 Telecom. policy was invented as a temporary "patch" that
would still favor a Monopoly over Free Market competition - no effort
was made to remedy the problems once and for all.  It is this narrow
scope of any policy that would eventually force it to be revised again
and again which would only add to the cost of governance and public
agony.  The Policy Makers are either forced to play politics or they
lack adequate Mental Models to come up with long-term solutions.

    The Mental Model that I advocate is the one in which we allow
unlimited number of players for Land Line Services.  Given this
situation there is no need to squable over the leased line rates.  The
Market will determine the rates.  Since we were never bold enough to
consider this option, we had to tie up the human resources at TRAI and
DoT to artificially regulate the prices - this is what I mean when I say
"adding to the cost of governance".  The Market forces are far more
superior at regulating prices than any artificial attempt from the
government Dot or TRAI.

Sincerely,
Vamis M.


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