Letter to BS: Regulator must keep a watch on pricing of products, services

This refers to “The next disruption” (November 29). It is quite common for a new entrant to dole out discounts and freebies while launching its services in order to get a foothold in the market. Companies with deep pockets can continue with their predatory pricing for a long period of time, causing disruption in the business environment. This is where a regulator needs to come into the picture. It is the regulator’s responsibility to ensure that there is sufficient competition. Also, the regulator must keep a watch on the pricing of products/services in order to stop companies from offering unreasonably low prices. To an extent, the current distress among telecom giants Airtel and Vodafone-Idea can be traced to the disruptive pricing offered by Jio.

Nothing comes for free in the world and seemingly free lunches have hidden prices that are unleashed once competition is finished. Regulators must ensure that any disruption caused in the market is short-lived, as large-scale disruption has the capacity to eliminate competition, thereby harming the consumers in the long run.

Sanjeev Kumar Singh, Jabalpur

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