Saturday, April 4, 2009

Collusion?

Surfing in 2010: 10-30% cheaper?


With StarHub establishing the OpCo and SingTel part of the consortium operating the physical infrastructure, is there room for collusion?

No, because IDA has mandated “they have to offer the same prices to everyone”, stressed Mr Liew. “They will not be able to provide prejudice to their own company or collaborate with another company to give lower prices.”


This is weird. When “they have to offer the same prices to everyone”, doesn't it mean that they can keep prices artificially high? And doesn't that mean collusion?

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