http://www.intomobile.com/2008/01/30/uk-the-cost-of-texting-from-abroad-could-drop.html Cell Phone News, Information, and Analysis Sun, 22 Nov 2009 02:37:53 -0600 http://wordpress.org/?v=abc hourly 1 http://www.intomobile.com/2008/01/30/uk-the-cost-of-texting-from-abroad-could-drop.html/comment-page-1/#comment-149651 Gregory Thu, 31 Jan 2008 08:25:16 +0000 http://www.intomobile.com/2008/01/30/uk-the-cost-of-texting-from-abroad-could-drop.html#comment-149651 This won't accomplish any diminish in bills in the long run. We've seen this when it was legislated that carriers charge per second. All they did was increase the connection charges. These heavy-handed regulations will also keep new comers out of the market. If the average customer wants lower prices, it is competition that will legitimately lower bills. This will instead cause an oligopoly; less competition and higher prices for everything. To those that think you can pass a law that will lower prices, you need to understand opportunity costs in economic terms to understand what will be the long term effect. Less profit will incline these companies to shelve expanding their networks and thus run up costs, legitimately. Capital is always directed into what is seen as the most profitable enterprise. This won’t accomplish any diminish in bills in the long run. We’ve seen this when it was legislated that carriers charge per second. All they did was increase the connection charges.
These heavy-handed regulations will also keep new comers out of the market. If the average customer wants lower prices, it is competition that will legitimately lower bills. This will instead cause an oligopoly; less competition and higher prices for everything.
To those that think you can pass a law that will lower prices, you need to understand opportunity costs in economic terms to understand what will be the long term effect. Less profit will incline these companies to shelve expanding their networks and thus run up costs, legitimately. Capital is always directed into what is seen as the most profitable enterprise.

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