Telenor’s Exit from Pakistan was Expected- CEO Sigve Brekke Confirms Merger
Telenor is looking for merging opportunities in Pakistan. This most expected news has come from a reliable source, CEO Telenor Group, Sigve Brekke. The Telecom operator performs in nine markets currently, while leaving Myanmar just recently. The company has also revealed its plans to merge its telecom unit in Thailand with a local firm in a decided deal worth $8.6 billion. While Telenor’s Exit from Pakistan Market was expected from the last few quarters, still the confirmatory news has come as a surprise for many.
This merger was expected keeping in view the deteriorating position of services offered by the telecom operator. Moreover, since last year the salaries of the employees were not raised and staff knowing the position of the company had left for better opportunities. Moreover, the company had instructed the financial department to cut down the expenses that are not important. According to Phoneworld sources, Telenor has also recently fired many old employees after giving 1-month notice and 6 months advance salaries.
The QOS survey from PTA has also highlighted the battle of services between Jazz and Zong and it also showed that the Telenor has left the race long ago. The company after trying too much was not able to come at par with Jazz and Zong as well when it comes to service quality.
Telenor’s Exit from Pakistan- Who is the Strong Contender for Merger
Currently, there are four telecom operators in Pakistan with Jazz having the largest subscriber base, Zong and Ufone. Looking into the merger opportunities, the wannabe Jazz, Telenor Pakistan cannot merge with Jazz since the Competition Commission of Pakistan will not allow it due to fair competition. As per the previous merger of Jazz is concerned, Zong was not comfortable in sharing its customers so we expect that the option left with Telenor is either Ufone or SCO.
SCO seems the perfect option since it is trying to extend its services in the Pakistani market for some time now. Moreover, both the telecom operators have the same interest when it comes to offering connectivity in AJK & GB. If the operator has no cash flow issues and the Authority permits this merger, we foresee that SCO will not let this opportunity go.
What’s Next?
From the last few quarters, it was evident that the company will be exiting the Pakistani market any time soon. Since it has also left other Asian markets including Thailand, Myanmar, and Indonesia. Now the only Asian Market left is Bangladesh and the position of the company there also hints at the same fate. So there is nothing Next, just that we have to wave goodbye to the operators in the coming months.
While the news of the merger is confirmed now, the eventual pull from these markets and Pakistan is going to dent Telenor’s Asian Dreams.
Also Read: Telenor’s Myanmar $783 write-off and eventual pull out to dent its Asian Dreams
Information is spot on
Good Riddance. There should only be 3 Operators in Pakistan as per my speculation. Ufone will Merge with Telenor Or Zong. Leaving Jazz, Ufone (Telenor Merged) & Zong Behind. Zong If Willing Takes Further Interest In Expansion Can Buy Telenor Merged Ufone SomeDay Leaving SCO Which Is A Third World Entity, Jazz & Zong Behind. So Far Majority Have Already Chosen Jazz & Zong As Their Final Go To Sims For Daily Calling & Internet. Jazz For Calls & Coverage & Zong For Internet.
No One Uses Ufone, Telenor Etc Any More.
TELENOR is offering its services in far flung areas in Pakistan so it’s exit will prevail darks
Might be possible SCO acquires it and the services becomes better
Ask gilgit Baltistan sco users about its services…. Pathetic and slowest network
Need to cut down on overhead . Too many employees, they are travelling a lot and staying in hotels over expenses. Salary structure on higher side compair with other local companies. They should have fixed employees for all the centre’s instead different cities executive travels at all time , hence company spending lots of unnecessary revenue on travelling plus accommodation. These are few tips .
yes you are right.
Well written but what they lack to taste failure.
Go to their facebook page and check feedback of their customers to know the answer.
FYI: Jazz (previously Mobilink) was bought by Vimplecom a Russian company that specializes working telecom in 3rd world countries like Pakistan & Telenor the parent company (not Pakistani as that is local partners who invested & brought Telenor to Pakistan (i.e Barclays/Citi Bank etc) already owns a good percentage in Vimplecom the Competition Commission an Pakistani Intel agencies who handle “security” have years ago already handed over(what you call merger) a significant portion/consumer base/calls” as you call it to 01 company. In other terms Russia & China (Zong) hold over 80% of Cellular+Internet of Pakistan to listen to when they like while China equipment/ZTE etc are also running in most PTCL&even in PK Military (what you call telephone exchange but much more equipment involved from landlines to cell to internet) – http://www.babarkureshi.com
Totally agree with you however we have called Jazz No 1 in terms of subscribers among other telecom operators. Also, you are talking about the Telenor group having shares in Vimplecom whereas we are talking about Telenor Pakistan and its services in the country.
I wish Telenor to stay in Pakistan, it better than Ufone and zong
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