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Dear Sir,
I wonder the reason why This might affect the profitability of the existing licensees.
The answer is in the third paragraph of “political perspective”.
“Secondly, in an attempt to raise more money to address the national debt, the government could decide that more than four companies should be licensed in the future, increasing competition in the sector and raising more income for the government. ”
Thanks in advance.It just means that perhaps 5 companies,could ne sharing the market rather then 4. All things being equal, market share would go from a potential 25% to 20% and this must hurt profits.
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