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Problem
The Telecommunications Regulatory Authority (TRA) is the UAE's independent industry regulator. Since its launch in 1976, Etisalat has held a monopoly in the market. That changed in 2006 with the emergence of du, which was awarded a 20-year concession to operate fixed-line, wireless, internet and international telecoms services. Assume after the 20 years period, du license was terminated. You are required to -
a. Apply your understanding and concepts from microeconomics, to investigate and summarize the major characteristics of the above market form in the telecom industry.?
b. Describe and analyze the economic and pricing policies that you would expect to find in this industry.?
c. Explain the profit maximization strategy of this market form with the help of a suitable graph.?
d. Also, write your policy recommendations for the healthy growth of the industry keeping customer interests and innovation in mind.
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