Telenor and China Mobile ~ Merge, Would they ?
By Arsalan Mir | July 21, 2009 | 25 Comments
Few days back, there was rumour on TGP of possible merger of Telenor and Zong. Dawn News has confirmed of possible merger negotiations.
According to sources, Telenor group is interested to sell its shares in Pakistan and is holding talks with the China Mobile.Though both the operators have denied any such development, sources said that negotiations were being held secretly at the group level.
Though Telenor, a Norwegian company, has a subscriber-base of 20 million or so in Pakistan, it has been deliberating to sell its management shares since long because of ‘security issues’.
The Telenor group has already focused on India for investment, as it recently sought to buy about 67 per cent shares of Unitech Wireless and telecom arm of Unitech Ltd in India.
The Indian market is experiencing a major growth in mobile penetration and currently it stands at 27 per cent with a total population of about 1.2 billion.
There has been a lot of potential in the market and the global operators see it a best place for future market. China Mobile’s first international business venture, Zong, currently has over six million subscribers.
Before the merger talks with the Telenor group, the China Mobile had offered to buy the management shares of Warid Telecom Pakistan. However, deal could not materialise owing to price issue.
Mobilink, Telenor, Ufone, Warid and Zong (CM-Pak) have reportedly conveyed to the PTA that there was a room for only ‘four’ players.
A PTA official said there were chances that by 2010, the country may have four operators.
The number of cell-phone users in Pakistan has reached over 90 million. Though Average Revenue Per User (ARPU) shows declining trend over the last few years, aggressive marketing and expansion of network has enabled mobile operators to grab more subscribers on their networks.
[via DAWN.COM]
Tags: Mobilink > PTA > Telenor > Ufone > Warid > Zong
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25 Responses to “Telenor and China Mobile ~ Merge, Would they ?”
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July 21st, 2009 @ 1:32 pm
[...] Link: Telenor and China Mobile ~ Merge, Would they ? | State of Telecom … [...]
July 21st, 2009 @ 2:34 pm
Whatever happens, I hope Telenor’s service quality doesn’t go down.
July 21st, 2009 @ 2:48 pm
[...] This cup of tea was served by: State of Telecom Industry in Pakistan [...]
July 21st, 2009 @ 10:37 pm
So the real compitiation is between warid and (Zong Telenor) a biggest mobilink will be out and Ufone will remains same market share what’s you opinoion
July 22nd, 2009 @ 1:38 am
7 RS seven hour lot of calculation is required
50 piasa of sms to activate
Total =7.50 Tax (only to subscribe)
addnow you still have to pay
FNF 13 Paisa /30sec = 26paisa /min
Onnet 20 Paisa / 30sec = 40paisa / min
so one hour cost for FNF = 23.10 Rs Tax / hour
so one hour cost for non FNF = 31.50 Rs Tax / hour
Now warid gives you crazy hour
11.99 tax /hour and all warid numbers
July 22nd, 2009 @ 2:08 am
Why is it that people never stick to the discussion at hand and act like beggars counting every paisa and debating price packages? promoting one company over other when the debate is about other bigger objectives?
And this Dawn News report reads funny. I wont consider it to be accurate since it came from unknown sources and also because i happen to know a thing or two about Telenor myself.
July 22nd, 2009 @ 6:21 am
i dont think this could happen as recently the zong(CMPAK) jusp put up more capital in the business and its going a perfectly stable on growing customer speed.
On the other hand Telenor is Mr.No2 on the scene and growing . . . with a lot different types and kind of managements, Not a chance.
i would say NO it cant happen. Its probabily just a Talk Show.
July 22nd, 2009 @ 6:58 am
That would cause an imbalance in market, I guess. I don’t think merger conditions are fulfilled. Well, who cares what are the conditions and laws. huh!
July 22nd, 2009 @ 11:02 pm
Both with the quite difference, it would not be possible!
July 23rd, 2009 @ 1:08 am
Telenor is working great. Zong need this as it is struggling
July 23rd, 2009 @ 3:48 am
Zong is the biggest telecom company of world. so telenor is struggling and lot of opertional cost of diesel that remote BTS need power and electricity condition in rural areas very bad than cities
Also marketing cost hit them and price war
Security issues
Telenor is in real troubles..
July 23rd, 2009 @ 6:57 am
Dear colleagues,
We have posted strong results for Q2’09, growing our Q-o-Q revenues by 8% and netting 908k subscribers compared to 597k in the previous quarter.
The Q-o-Q subscriber growth of 52% has come at a time of significant industry competition and market challenges. With approximately 20.9 million subscribers at the end of Q2’09, we have exceeded industry average growth and strengthened our No.2 market share position. Quarterly growth of 19% in EBITDA in the second quarter signifies our success in enhancing operational efficiency even as the industry struggles with high costs of doing business in the local market.
Executive Vice President and Head of the Telenor Asia Operations, Sigve Brekke, has expressed his confidence in our performance, with these comments: “We are very pleased to see that the Telenor Group companies in Asia deliver good results even in tough times. The second quarter figures re-confirm the importance of this region in Telenor, and we are excited about continuing to be a part of the development of the mobile industry in Asia. We are committed to Telenor Pakistan, and we are impressed with the effort our colleagues in Pakistan have shown in delivering good results.”
I truly believe that the credit goes to all of you, who have responded to the changing dynamics of the market, managed risks and opportunities well, and committed to a constructive process of change. It is because of you that today, we have a network, a brand, and a culture that are healthier than ever. I am confident that we are well-positioned to realize new business opportunities in the market in line with our long-term commitment to Pakistan.
Regards,
Jon.
July 23rd, 2009 @ 1:00 pm
@ Jon. Are you Sabeen or Jon. Please Clarify.
Let’s pray that Chinese take control of Telenor overnight. YEAAAA!!!!!
July 23rd, 2009 @ 1:02 pm
@ Sabeen
Who is Jon?
July 24th, 2009 @ 4:27 am
Jon is the CEO of Telenor Pakistan
Jon Eddy Abdullah
July 24th, 2009 @ 5:41 am
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO Jon is Jon Eddy Abdullah. Then who is Sabeen? For the love of the Voice this post has created an elephant confusion.
July 24th, 2009 @ 6:49 am
MR.
PatiyalaPechLagakeTeriGaliVichAaKeTaliHogaye
ACCTUALY YOU ARE CONFUSED, I THINK IT IS VERY SIMPLE (WHO IS JON AND WHO IS SABEEN)
TAKE CARE
July 24th, 2009 @ 11:13 am
OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO So Jon is posting with the name of Sabeen. Jon is too much.
August 3rd, 2009 @ 2:35 pm
[...] Entry For Telenor In India August 4th, 2009 // As discussed earlier of a possible acquisition of Telenor Pakistan by China Mobile Pakistan (CMPak) possibly to let Telenor get a green signal to enter the [...]
August 4th, 2009 @ 1:15 am
If TELENOR MERGE WITH CMPAK.THEN CMPAK WILL BE ON THE TOP IN PAKISTAN FROM ANY POINT (COVERAGE & SERVICE).IT WLL INCREASE THE REVENUE FOR BOTH COMPANIES.IT SHOULD BE DONE ASAP.
REGARDS,
ALI BUTT
03139133999
September 7th, 2009 @ 12:02 pm
i think telenor should be merge in Zong , coz infront of zong telenor cant stay any moe so for its respect its better to merge in zong
October 23rd, 2009 @ 12:49 am
I dont see any posibility that they would merge, nothing would be achieved.
November 14th, 2009 @ 1:39 am
[...] consolidation and deal making. On the other hand it ushers a new era of competition. Giants like China Mobile (Zong) were in talks to buy Telenor at one time as well. Also at one time speculations were high of complete takeover of Warid Telecom [...]
November 14th, 2009 @ 12:34 pm
[...] and deal making has started. On the other hand it ushers a new era of competition. Giants like China Mobile (Zong) were in talks to buy Telenor at one time as well. Also at one time speculations were high of complete takeover of Warid Telecom [...]
April 3rd, 2010 @ 1:29 pm
i think zong should purchase mobilink.i rea that mobilink is selling it to vodafone