In the context of the argument regarding competition in the mobile service sector in Papua New Guinea (PNG), the stakeholders involved can be identified as follows:
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GoPNG Entities (Government of Papua New Guinea): These are government bodies or ministries that oversee communication, technology, and related regulatory frameworks.
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Network Providers: These can include companies that build and maintain the physical infrastructure for telecommunications, such as towers and cables.
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Mobile Service Providers: These are companies that offer mobile services to subscribers, typically using the infrastructure provided by network providers.
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Regulators: Government agencies responsible for overseeing the telecommunications industry, ensuring compliance with laws, and maintaining fair practices.
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Mobile Subscribers: The end-users of mobile services, including individuals, businesses, and organizations that rely on mobile connectivity for their communication and operational needs.
Reasons for Disagreement in the Current PNG Context
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Local Ownership: A key argument against competition in the PNG mobile sector is that it can undermine local ownership. In a competitive market, multinationals might dominate, leaving local companies struggling to survive. This can negatively impact local economies and limit opportunities for PNG citizens in terms of employment and entrepreneurship. Strategic management theory emphasizes the importance of local knowledge and context in creating competitive advantage. By fostering local ownership, PNG can ensure that the telecommunications infrastructure development aligns with the country's unique needs and aspirations.
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Unfair Business Practices: Competition does not always lead to a level playing field. Larger firms typically have more resources to engage in aggressive pricing strategies or marketing campaigns that smaller local providers cannot match. This leads to a market skewed in favor of larger entities, potentially driving local companies out of business and decreasing overall service diversity. According to strategic management principles, firms must operate within an environment where fair competition is enabled to ensure that all players can contribute to innovation and service quality. Without safeguards, competition can perpetuate existing inequalities.
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Quality of Service: While competition might promise lower prices, it can sometimes lead to a race to the bottom concerning service quality. Companies may cut corners to remain profitable, resulting in subpar service for consumers. In strategic management, this aligns with the argument that focusing solely on competition overlooks the key aspects of value creation and differentiation. Maintaining high service standards is crucial, especially in a developing nation where network reliability can significantly impact economic and social activities.
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Infrastructure Development: The necessity of developing infrastructure in PNG can be compromised in a hyper-competitive environment. Companies might focus on short-term profits rather than long-term investments in infrastructure that are essential for sustained growth. Strategic management advocates for a balanced approach where competition is welcomed, but not at the expense of necessary investments in infrastructure that benefit all stakeholders in the long run.
By considering these points, it becomes evident that the PNG context presents unique challenges and opportunities that necessitate a more nuanced approach to competition within the mobile service sector. While competition can yield benefits in theory, without addressing issues of local ownership, fair business practices, quality of service, and infrastructure investment, it may not serve the best interests of all stakeholders involved.