Be Afraid, be very afraid

The government fresh from stealing one companies private property rights have set their sights on the Mobile market.
 
Helen Clark utters truly scary words to any entrepreneur out there.
[quote]"Mobile is going through a long dance at the regulatory process. We just have to change the rules of the game."[/quote] 
Meddling bloody socialists. They clearly do not understand the concept of spending capital and seeking a return on that capital spent.
 
According to their recent review meddling is required because;
  • New entrants' inability to use other operators' networks.
  • Operators' failure to share cell sites.
  • The failure of resellers of the incumbent's networks to emerge.
Now lets look at this in a little bit more detail.
 
First up, why should new entrants have the ability to other operators networks. Telecom and Vodafone have spent millions if not billions of dollars building their own networks. Why should any johnny come lately be given access to that investment?
 
Secondly, again why should operators share cell sites? Is this really a hinderance to competition? With technolicy advancing, cell sites are becoming smaller an less obtrusive, this is almost just an excuse for regulation.
 
Thirdly, Why would you go to a reseller, or in fact set your self up as a reseller of other providers services. There really isn't a successful business model in existance that would survive the constant downward pressure of telecommunications pricing to enable anyone to set up as a viable reseller. Living on margins just ensures you get squeezed.
 
If Labour was truly concerned about setting up more competition in the mobile sector it wouldn't have given the third spectrum to a bunch of broken arsed Zimbabwean scamsters.
 


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