Competition & Consumer Welfare-Infrastructure Provision

I salute the contents of two interesting news items from the Business Standard dated December 7, 2013. The first is titled “Try and Introduce Competition”. It suggests that the dismantling of the government monopoly in power supply in New Delhi and replacing it by three area wise private sector monopolies has not sufficiently addressed consumer welfare and that we also need competition in each sub market for lower tariffs and quality of service rather than expecting the present regulated prices to substitute competitive markets. 

The second is a report on an interview with the Civil Aviation Minister and its title says its all- “I am not Minister for Air India.” The article tells us that the Minister when questioned about his promotion of private competition made it clear that his job is consumer welfare rather than protection of the public sector incumbent. 

It would be good if the telecom sector were to recover from their past follies and pick up a cue rather than blunder ahead in a manner that harms competition. This is especially so when it comes to public funding/Universal Service.