Saturday, 5 August 2006

OFCOM deregulations

Whilst shopping today, I noticed a billboard from OFCOM stating that UK telephone providers would be free to set their own prices.

As a market anarchist, this seems like incredibly welcome news! Industries should be free to regulate themselves. However there was one drawback. OFCOM would retain a role in the telecommunications industry, be ensuring "fair play" between rival companies.

The free market should be unrestricted in this sense. If, for example, BT charged higher prices than NTL, then BT would be "punished" by the consumer and less amounts of people would purchase their services. BT would have little choice but to reform to stay competitive.

If anything, OFCOM shouldn't exist at all. If a company is mistreating its customers, then it would lose business. Competitor companies would be more than happy to accept these new customers.

One negative aspect is that our overly regulated and burdensome economy would deter new entrants into the market. Of course, in a market anarchy, there would be a far more business friendly environment. Entry into the market would be substanitally easier.