This is from the blog DNA read the world.
A bit of history is in order here. Why did the telecom opening up under Narasimha Rao fail? Same reason. Very high bids, and unrealistic expectations from the market. People who owned mobile phones in the mid-1990s will recall that every minute of talk-time cost Rs16-32, depending on the time of usage. Little wonder mobile services were heading nowhere. It took a new telecom policy and a shift to revenue-sharing mode to rescue the industry from oblivion.
Will the high prices paid for 3G lead us to the same dead end? Probably not, for history never repeats itself exactly. And India is now a growth tiger which can afford more high-priced services at the top of the pyramid. But one philosophical point must be noted: is it better to have low entry prices and higher revenues from sustained volume growth or high entry prices and low volumes? It boils down to the golden goose argument. You can either kill the goose to get all the eggs upfront or keep it alive to earn steadily growing revenues over a very long period.
To know more pl. How easy money..
How-easy-money-leads-to-weak-governance
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