The Norwegian telecom operator Telenor Group is exploring “merger opportunities” in Pakistan, as stated by its Chief Executive Officer (CEO), Sigve Brekke.
Brekke told Reuters that the Telenor Group, which operates telecom businesses in nine markets across Europe and Asia, is looking for merger opportunities in Asia, including in Pakistan and on a regional basis.
The development comes after CEO Telenor Group announced a plan to merge the company’s telecommunication unit in Thailand with a local firm in a deal worth $8.6 billion.
According to ProPakistani’s sources, Telenor could potentially merge with Ufone or SCO because the Competition Commission of Pakistan (CCP) will not allow Jazz and Telenor to merge primarily because of the antitrust reasons.
On the other hand, Zong will not merge with Telenor because it does not believe in buying customers. This has happened before and the company has decided to grow instead of acquiring Warid and its customers.
SCO, which has been looking to enter the Pakistani market for a long time, appears to be a strong contender. As long as it is okayed by the government and has the availability of cash flows, it would not want to miss the opportunity.
Ufone/Telenor makes perfect sense — considering the recent changes as the PTCL group and its intent to grow (based on how it grabbed the recent spectrum), and it seems like it would want to at least evaluate the deal, if not close it.
Telenor’s intent to exit Asian markets was quite visible for the last few quarters, but it’s only now that they have gone on the record about it. Their exit from Myanmar, Thailand, Indonesia only hinted they could call it a day in Pakistan and Bangladesh too.
This shift in focus is mainly due to mounting operating costs, low ARPUs, and the incessant instability in the region.
Irfan Wahab Khan, CEO Telenor Pakistan told ProPakistani,
Telenor has been empowering the people of Pakistan over 16 years and has contributed immensely to the growth of telecom and digital infrastructure in the country. The telecom industry is fast evolving and there is a greater need to achieve scale in order to transform and invest in future technologies to create greater value for customers. The future is digital and as the industry evolves, we will continue to explore and assess structural possibilities where it makes sense in order to keep serving our customers better.
Telenor’s books clearly reveal that its European operations are more lucrative, which led it to make the decision.
No operator makes better sense in Asian countries unless it is indigenous in nature or if it has vested political or economic motives.
Although Telenor’s position in Pakistan is solid and warrants a good bargain, the deteriorating and unstable currency, market dynamics, and increasing pressure from competitors may affect its evaluation, and is probably why its exit from Pakistan is being prolonged.
Via: Reuters
Merger with SCO mean new railway and PIA. SCO is most incompetent company you could imagine. Ask feedback from people where SCO is operating. Either Pakistan don’t recognize GB and AJK citizens full national or it prefer vested interest of public organisation over peoples.
agreed
Why they are selling their company. I love telenor. In my village telenor launched 3G and 4G in September of 2014. And now its 2021, now 4g from Jazz and poor 3G services. And Ufone has not even 3G in 2021.
Telenor did not had 4G license in september 2014. Stop lying.
Celme +923009671125
Telenor please improve the service
In Azad Kashmir
Telenor Pakistan can’t meet the services as per the current need of the customers so that’s why now they are going except of servicing there customers in a good manner by doing more investment on there network.
Telenor used to be the ever best mobile phone operator when Top Management used to Europeon.
The Pakistani Management tried to cut the OPEX and that resulted in almost collapse of the customer services.
They tried and definately cut the OPEX but that resulted in REVENUE LOSS and customers base was shrinked.
As Ufone has Pakistani management so look at their expensive useless illogical package, bundles and offers, Ufone has most expensive packages right now with lowest 4G coverage with deadly slow speed, after merging with Telenor and Ufone, Telenor will have most expensive offers and packages like Ufone, so Telenor user will kick out Telenor, both Ufone and Telenor will be in loss, just mark my words
it will be great if Telenor and jazz merger is going to happen, If Telenor merges with Ufone then it will be great loss and it will be useless for end users, Ufone already has worst expensive and useless illogical offers after acquiring Telenor It will also ruin Telenor packages and bundles, As telenor users are not as jahil as Ufone users are, so in result Telenor users will kick out Telenor, again it will be in loss, just mark my words,
Telenor is robbing customers by by automatic subscriptions of some services.
Should be investigated.