Mobilink, Warid Telecom announce merger

[NP-complete]

Well played Mobilink.

They just placed bid for 3G in auction and didn't spent a penny at 4G. Warid got 4G LTE without spending any penny.

After this merger, Mobilink has all 3g, 4g and 4g LTE spectrums covered without spending a single additional penny.





Mobilink used to f-ck its customers dry in early years, hope you remember those days. As per 2015 stats:

Mobilink: 35 million customers
Telenor: 33
Warid: 10

And after this merger:

Mobilink: 45 million
Telenor: 33

So Mobilink becomes are distant winner, Telenor will need a merger with either Zong / Ufone to compete against Mobilink, else a monopoly like situation in favor of Mobilink and customers are going to suffer badly.

Not to forget, Mobilink services and network data sucks.

Government owned PTCL had monopoly on telecom service in Pakistan for 30,40 years before mobile service started. But that worked just fine. Vodafone worked very well in UK, Airtel in India in absence of any competition. Problem with Mobilink was something else. Its called inelastic demand. Thats when people will keep buying the thing even when its prices are increased.

Monopolies never benefit anyone except the shareholders. There are almost no exceptions in this case. the IT industry that you talk of relies heavily on competition to provide you the latest hardware at affordable prices.

Example:
1- Without AMD, Intel would still be overcharging customers for the same P4 over and over by just tweaking the speeds.

2- Without Yahoo's bloated search, there would be no incentive to build Google.

3- Without Apple we wouldn't have the ultra-sleek ultrabooks that we see from other vendors today.

3- Without competing carriers, customers would be paying the earth for simple calls like Etisalat customers were forced to do before du Telecom arrived.

4- Microsoft may have small competition from other OS, but their market-share resulted in most consumers installing pirated copies of Windows (esp thanks to so many crackers like DAZ team).

Firms not only compete for customers they also compete for resources. They all go to the resource market and buy their inputs. Like all steel making firms buy their iron ore from its market. It pushes the prices of inputs up. When a resource is very rare its best that the number of firms is very low. In early years of microsoft and google there were very few highly able software guys available that would make there products. Other companies would not have the human resource available to make matching high quality products. Therefore there were not competing companies in the industry. If there were competing companies the products wouldve been of lower quality because highly able labour was rare and inferior labour was more abundant. More firms wouldve used inferior labour and industry wouldve produced low quality products.

 

[Manindra]

Government owned PTCL had monopoly on telecom service in Pakistan for 30,40 years before mobile service started. But that worked just fine. Vodafone worked very well in UK, Airtel in India in absence of any competition. Problem with Mobilink was something else. Its called inelastic demand. Thats when people will keep buying the thing even when its prices are increased.

I don't know about in Pakistan but who told you that Vodafone (in UK) & Airtel (in India) have not competition.
In India, there are a cut throat competition.

 

[NP-complete]

I don't know about in Pakistan but who told you that Vodafone (in UK) & Airtel (in India) have not competition.
In India, there are a cut throat competition.

in mean initially they were alone in the market. wasnt airtel the first company in india? later companies came in when market matured.

 

[Manindra]

in mean initially they were alone in the market. wasnt airtel the first company in india? later companies came in when market matured.

Yes, but not held long as other competitors also come in the same & next years unlike Pakistan where PTCL hold long.

 

[Sugarcane]

How many employees will be axed?

 

[RazorMC]

Not really. Make it a 1st come 1st serve basis and licenses to be for small geographical divisions such as towns and even blocks within towns. You will have alot of competition, amongst what you call tom dick harry. The non-competitive ones will go bust or merge with others. Process will keep repeating till it reaches dynmic equilibrium which depends on many external factors such as interest rates, technology (which might determine min. efficient scale) etc etc.

Govt regulation does not maintain fair play. And it does not have a tendency to be misused, it is made to be used by those in power to benefit themselves in many ways (not just monetary ways).

First come first serve is not how efficient economic systems work.

An inept operator will just waste the spectrum allotted to it and will not benefit consumers in any way. They will be deprived of service and facilities until such time that it is forced to close/merge.

 

[Zibago]

Mobaa link and al wareed merger isi saazish

@Windjammer

 

[Windjammer]

Mobaa link and al wareed merger isi saazish

@Windjammer

It's Sajish.

 

[pkd]

VimpelCom is a Russian Company, this means the Russians would dominate the Mobile/Telecom Buisness in Pakistan. Be ready for a massive eavesdropping.

 

[Faiez]

First come first serve is not how efficient economic systems work.

An inept operator will just waste the spectrum allotted to it and will not benefit consumers in any way. They will be deprived of service and facilities until such time that it is forced to close/merge.

An inept operator if doesn't benefit the customers, doesn't benefit itself (loses business). Will either go bankrupt and assets including license to operate will be sold. The process repeats with the next buyer until it lands in hands capable of operating efficiently/profitably. That's how the free market works, you can never have a problem with free market.