Case1: In country XYZ there are two telecom monopoly operators: xx Inc. and ee I
ID: 3708346 • Letter: C
Question
Case1: In country XYZ there are two telecom monopoly operators: xx Inc. and ee Inc. Each pays a royalty on telecom income to the government of XYZ of 25% which amounts to 3bn USD each. The operating margin for each operator is 45%. This is considered veryhigh by international standards. The income of ee and xx is as follows: 60% calls and 40% from data services. In addition, ee and xx are private companies owned by shareholders. To optimize profit, both ee and xx block some voice over ip services such as calls from a popular app call "Whatsapp" but not calls from "Facebook" or Skype" (if they are not being initiated from a mobile device). Furthermore, Netflix Inc, a popular streaming service is no blocked in the country. However, Amazon Prime video is blocked in the country. Given this, answer: 1) 2) 3) 4) 5) 6) Give one reason from a utilitarian approach in favor of the current situation. o1 Give one reason from a utilitarian approach against the current situation. o1 Give one reason from a fairness approach in favor of the current situation. o1 Give one reason from a fairness approach against the current situation. o1 Give one reason from a common good approach in favor of the current situation. o5 Give one reason from a common good approach against the current situation. o6Explanation / Answer
1) One reason from a utilitarian approach in favour of Situation 1
Ans - The Utilitarian Approach includes the facility of video calling enabled from many social networking sites such as Facebook and Skype which will help the users to use this feature and enable calls to happen from both the telecom operators. Also users can take advantage of popular video streaming sites like Netflix to watch free videos of their choice. Thus, these utilitarian services are in favour of Scenario 1.
2) One reason from a utilitarian approach against the current Situation 1
Ans - Blocking of some voice over ip services such as Whats App (which is extremely popular now a days) and Amazon Prime Video in the country, which could have achieved the net benefits and costs to all stakeholders on an individual level.
3) Both XYZ and ee telecom operators are fair in the availability of services being provided to the customers (i.e both have blocked Whats App calling feature and Amazon prime Videos is blocked by their services). Both have provided video calling features from Facebook and Skype. Thus, on a whole both these telecom operators provide the same access to resources on a equal basis so both are fair.
4) Although many customers would love free calls from a popular App called Whats App, both these telecom operators have blocked the calls due to some security reasons. So we can say that both are fair as if XXX doesnt allow Whats App call to happen, even ee operator will also not allow "Whats App" call to take place via their communation channel. Thus both are fair in implementation even though its against Situation 1 of allowing calls from other apps.
5) Common Good Approach is that both these telecom operators are currently allowing a popular video streaming service of NetFlix Inc in their country. Thus all citizens in the country can avail all latest videos from Netflix via these operators and thus revenue can be earned.
6) From a Common Good Approach both telecom operators have banned Amazon Prime Videos and thus no citizen will have access to it throughout the country. So both of the telecom operators are being true and fair to the customers even though they might want Amazon prime videos to be available via the telecom operators. So this fact might go against Situation 6, but since both the telecom operators have restricted it its a common good approach not to violate the rights of any individual user.
Please let me know in case of any clarifications required. Thanks!