Sunday, December 04, 2005
[679:464] Of greedy protectionists within Malaysian telcos industry
[679:464] Of greedy protectionists within Malaysian telcos industry
When limited members of a society benefit from restricted competition at others' expense, it's all too possible that a protectionist (tag) is lurking somewhere, menacingly. According to The Star yesterday:
This is no doubt a protectionist's wet dream.
Think about it.
If the government enacts the restriction, on one hand, the would be adversely affected business owners would lose legitimate future income - reduction in wealth - to the groups that are lobbying the government to restrict competition. In simpler term, it's called stealing. Theives steal and those lobbyists are downright robbers.
We, the consumers on the other hand, would have to purchase these cards from few selected sellers. That means consumers have to put forth extra effort - another word for cost - in order to search and purchase a good.
Worse, these sellers would monopolize a market niche when they aren't supposed to under efficient conditions. Meanwhile, it might be true that the consumers won't have to fork extra cash to make a purchase with the new ruling, but a loss in convenience is a loss in consumers surplus.
The government mustn't let this new, unfair ruling come into being. The telcos distributors and dealers are merely thinking about their profits and absolutely not about the market efficiency. Neither do they care for other individuals and groups with honest wants and needs.
For these reasons, that restriction mustn't be imposed. Free market must reign supreme, for fairness' sake, in the name of the people.
One more thing - if the lobbyists' side can't stand the heat, they should get out of the kitchen.
p/s - Ajax is currently in deep shit, again. But this win helps a lot.
Prepaid mobile phone users may no longer enjoy the convenience of buying their top-up cards at sundry shops and coffeeshops.
The Energy, Water and Communications Ministry is considering barring telecommunications companies from appointing such stores as retail agents for the cards."
Minister Datuk Seri Dr Lim Keng Yaik said the move was vital to protect the business of telecommunications distributors and dealers.
This is no doubt a protectionist's wet dream.
Think about it.
If the government enacts the restriction, on one hand, the would be adversely affected business owners would lose legitimate future income - reduction in wealth - to the groups that are lobbying the government to restrict competition. In simpler term, it's called stealing. Theives steal and those lobbyists are downright robbers.
We, the consumers on the other hand, would have to purchase these cards from few selected sellers. That means consumers have to put forth extra effort - another word for cost - in order to search and purchase a good.
Worse, these sellers would monopolize a market niche when they aren't supposed to under efficient conditions. Meanwhile, it might be true that the consumers won't have to fork extra cash to make a purchase with the new ruling, but a loss in convenience is a loss in consumers surplus.
The government mustn't let this new, unfair ruling come into being. The telcos distributors and dealers are merely thinking about their profits and absolutely not about the market efficiency. Neither do they care for other individuals and groups with honest wants and needs.
For these reasons, that restriction mustn't be imposed. Free market must reign supreme, for fairness' sake, in the name of the people.
One more thing - if the lobbyists' side can't stand the heat, they should get out of the kitchen.
p/s - Ajax is currently in deep shit, again. But this win helps a lot.
