Views Expressed

The views expressed in this blog are mine,it does not reflect the view of the institution where I work.

Tuesday, December 28, 2010

Economic Lesson from An Illegal Call Bypass in Nepal

Today's Editorial of Myrepublica raised legal issue regarding call bypassing. However, it is unable to analyze its core causes, which are economic. Though it is illegal, why call bypass is in huge volume in Nepal. Call bypassers provide services at low price. There is only one alternative to eliminate the call bypass, that is to adopt advance technology and reduce international call prices. Government cannot compete with these call bypassers who use advance technology and provide services at low price. Using police force and legal action to compete with advanced technology is ridiculous and waste of resources.

The lesson to the government is to learn from call bypass technology, lower taxes, and price of calls. Low taxes and price also increases government revenue because call hours increases as call price decreases. And, increase in call hours increases revenue. It is in the favor of welfare of the people. They can talk more hours about their business and their relatives as well. In nutsell, the solution of the problem is to lower tax, increase competition and adopt technology. Let us take it as a lesson for our advancement.