Telecoms Economics

In market economy theory, price is a reflection of supply and demand. Whenever there is excess demand, prices go up, and supply should then increase in order to bring the price close to its equilibrium. If we apply the supply and demand theory to the regional telecoms industry, the disequilibrium is staggering, with strong demand from mobile and integrated operators willing to expand outside their home markets on the one hand, and scarcity of supply with only few greenfield licenses and privatisation transactions to come on the other hand.

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