Is there a paradox of regulation Telecoms?

Telecommunication Charges Getting Lower after Deregulation 

Numerous academics and industry mavens agree that government regulations should 2014 Aug 27_1be relieved in many markets, since these regulations ironically harm consumers. This is the so-called paradox of regulation.  According to this article, the deregulation of the industry has brought about lower fees and better service.  The Japanese market is singled out as a case in point where smaller rivals Softbank and KDDI have successfully been able to take on the market leader NTT DoCoMo with competitive and attractive pricing plans.

  •  According to the telecommunication industry on August 25, the biggest telecommunication service provider, NTT DoCoMo, introduced “Kake-hodai & Pake-aeru,” a new subscription plan based on a flat rate, in June. The essence of these plans is to be able to use unlimited voice calling with a monthly payment of 20,000 to 30,000 won (US$19.63 to 29.47).
  • During the same period of time, another Japanese telecommunication service provider company, Softbank, released a similar plan. KDDI also plans to launch a similar system soon.
  • Therefore, market leaders like NTT DoCoMo are free to join price competition upon its own necessity. Without government regulations, free competition in the market is being created.

More Here…  [Business Korea]  

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