Don’t monopolistic operators damage the competitive advantages of a country?

Posted by Open Gardens on September 29th, 2007 - 12:09 am

Here is a thought. I am a frequent visitor to a country which has an operator who is in a strong, monopolistic situation.

Every time I visit this place, I think that the operator is doing a dis-service to the nation’s entrepreneurs.

In effect, the operator benefits on a short term basis from high prices and walled gardens.

The country's government is blinded by short term stability in the marketplace.

Meanwhile the mobile entrepreneurs suffer (or emigrate to neighbouring countries with far more enlightened governments).

Very soon I expect that other more open technologies like wimax will come along.

The operator's profitability will drop and they will probably be acquired because like all old operators they have a high cost base

However the real loser is the country - because I suspect that its best mobile entrepreneurs and will leave for foreign lands and that's a permanent loss to the economy!

Original Source: Open Gardens

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Ajit Jaokar is the CEO of a London based publishing company futuretext focussing on mobility and Digital convergence. Ajit Jaokar also chairs Oxford University's next generation mobile applications panel and is working extensively with mobile web 2.0 i.e. the impact of web 2.0 on mobility and digital convergence. His book Mobile web 2.0 will be released in June 2006. He currently plays an advisory role to a number of mobile start-ups in the UK and Scandinavia and works with the governments and trade missions of a number of countries including South Korea, Ireland and the Faroe Islands. He is also a member of the Web 2.0 Working Group.