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.
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.