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No Electricity, But got Cell Phones : India Need New Rules?

 

He zeroes in on one of the students and christens him Nelson. "I’ll bet Nelson has a cell phone," Romer remarks. He then asks the audience why Nelson would have a cutting edge technology like a cell phone but no access to electricity. His answer -- rules. Romer explains that in this country the electric company has to provide electricity at a subsidized price, and so cannot make profit. They have no incentive or ability to reach more customers. The president has tried to change pricing but protests broke out from businesses and the public.

 

Quite a unique perspective. India is another example. Most people have cell phones, but no electricity. For instance, in the state of Andhra Pradesh, on an average you only get electricity for about 10 hours a day.

in this country the electric company has to provide electricity at a subsidized price, and so cannot make profit. They have no incentive or ability to reach more customers

The above quote pretty much says the story. Need no explanation what so ever.

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