Football fans are angry at having to change set-top boxes in 2010 when SingTel takes over the broadcasting rights to the EPL football games from Starhub.
This is an example of the waste and higher cost suffered by consumers through free market competition. Starhub and SingTel have be compete aggressively for the broadcasting rights and pass the higher cost, including the additional infrastructure cost, to the consumers.
Consumers have a choice. They can give up watching EPL football. I will take this choice in my family. Goodbye, EPL.
I wish to suggest the following approach to the Media Development Authority. Ask Starhub to set up a separate company to operate the cable infrastructure, and to allow all content providers to rent the channels to broadcast their contents. SingTel can rent the channels to broadcast the EPL games.
This approach is similar to what is being done for the distribution of electricity. One company is responsible for the distribution and billing the power that is generated by different operators.
There is a need for the distribution monopoly (for broadcasting or power supply) to be public owned or to be publicly regulated. We need to develop the expertise to handle these regulated matters, rather than take the easy way out to "leave it to the market". We cannot expect market forces to work when there is no true market, such as the case of a monopoly or similar structures.
In the regulating bodies, the consumers should be adequately represented by consumer advocates, rather than selected from the "establishment".
Tan Kin Lian
We need a new approach towards market competition, as follows:
ReplyDeletea)have a regulated monopoly (operating on cost polus) for the distribution (i.e. cable TV network, power supply, bus service)
Allow competition at the next level, where there are many players, e.g. TV programmes, power generators, bus opertors).
It is better to have a regulated monopoly rather than a free market model that does not work well, and bring inefficiency, waste and higher cost. It is called wasteful competition.
ReplyDeleteWhat is the role of govt if almost everything here "leave it to the market"?
ReplyDeleteNo wonder our govt pay also "leave it to the market" but when market down, are their pay really down?
Kin Lian,
ReplyDeleteIt is not about monopoly. It is about who is powerful and mighty in terms of politics and wealth.
Those who have no power and wealth will be slaved forever.
That's all.