Mobilink & Warid going to merge


#1

http://www.dawn.com/news/1222436/mobilink-warid-telecom-announce-merger

http://www.mobilink.com.pk/media-center/vimpelcom-and-global-telecom-holding-combine-pakistan-telecom-business-with-warid-telecom/

http://www.waridtel.com/media-center/press-release/archive/316

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Remember when we used to have Paktel? Then China Mobile came & bought it (and renamed it to Thong Zong). Something similar is happening again. This time the largest telecom operator in Pakistan (Mobilink) is merging with Warid (they're practically buying it, but a merger sounds better apparently). It is most likely that Mobilink will retain their name as it is more popular, they will probably borrow that LTE tag from Warid though.

The way i see it, it's not really a good thing. We only had 5 networks to begin with, so now it's gonna be even less options to choose from. Not to forget that less competition means less competitive value/prices.

In any case, it is how it is. The way i see it, Warid customers will gain a lot more network coverage, while losing their high-quality service. Mobilink customers will gain LTE while losing on... nothing. That's the two main cons/pros of each.

Your thoughts?


#2

I always hated Warid and I love Mobilink for its coverage, support and other customer friendly facilities. Win-win news for me this one.

Next, I hope someone eats Ufone in a similar manner, because that operator is 2nd on my hit-list. The ONLY thing good about Ufone, is its video ads. Rest is junk. Occasionally, even the ads too.

Mobilink service is excellent and high quality, so I fail to understand what loss existing Warid customers will have after the merger will be complete.

Only thing left between 0300 and 0321, is 0312 = zong. Otherwise Mobilink will have a delightful array of prefixes for new customers to choose from, i.e; 0300-0323. Time to speculate on the fate of ZONG in the coming years.


#3

[quote=", post:, topic:"]

Cellular companies’ merger to diminish govt’s 5G auction plan

LAHORE - The much-hyped and talked about merger between the two telecom companies would end up in creating monopoly of one company that would drastically discourage healthy competition and would dent telecom industry by compromising the customers-oriented policies and lay-offs in cellular sector. Moreover, this merger has diminished the government’s plan of auctioning the remaining 3G-4G and upcoming 5G spectrums.
On November 26, the CEOs of Mobilink and Warid announced in a press conference that both the companies stand merged and would be eventually absorbed into one entity. Apparently, the decision has been taken to benefit the 45 million subscribers of the two companies. Yet, however, behind the scene accounts narrated by telecom insiders tell a different story altogether. The market sources believe, in the name of so-called merger, a stage has been set whereby one company draws the maximum benefit and would enjoy monopoly in the telecom company. “I really wonder if this really is a merger, in the first place. A merger allows two companies to come together to form one united entity. But in the case of Mobilink and Warid, the entire stage is set to favour Mobilink and Warid would get vanished. Given the scenario, we can safely say that a mega monopolistic arrangement is in the making under the direct patronage of the government authorities that are watching this entire episode as a silent spectator,” commented a telecom insider. The source described the situation as a free-for-all opportunity for the Mobilink at the cost of destroying the telecom industry. As per the merger agreement, Mobilink will acquire 100 % shares of Warid. In this backdrop, huge lay-offs at both the telecom companies are feared that would scale-up unemployment and create a situation of uncertainty.
According to PTA officials, all telecom operators have communicated to Pakistan Telecommunication Authority (PTA), stating that the cellular mobile operators (CMOs) had committed major investment in the NGMS auction held in April 2014.
“However, we regret to inform that all the promises made during the auction process remain unfulfilled till date,” sources quoted the cellular companies as having conveyed to the state-run telecom regulator.
“We through this letter once again want to clarify that it might not be possible for the existing CMOs to commit any investment in the spectrum auction unless our problems are addressed on priority basis”, the telecom companies have conveyed, according to sources.
The Mobilink parent company Vimpel Com last month had announced the Mobilink’s acquisition of Warid Telecom. Mobilink will first acquire 100% of Warid’s shares in consideration for the Dhabi Group shareholders acquiring approximately 15% of Mobilink’s shares.
Mobilink Chief Executive Jeffrey Hedberg will become the CEO of the combined business, which will serve 45 million customers in Pakistan, giving it a substantial lead in terms of market share. According to reports, the board of the new company will consist of seven directors, of whom six will be nominated by Vimpel Com and Global Telecom Holding (GTH) and one nominated by the Dhabi Group shareholders.
The merger is expected to create capital and operating expenditure synergies of about $500 million. The combined revenue of both companies for the year leading to September 2015 was $1.4 billion. The transaction is expected to close within six months, subject to obtaining approvals from the relevant authorities in Pakistan.

Source: http://nation.com.pk/business/12-Dec-2015/cellular-companies-merger-to-diminish-govt-s-5g-auction-plan

[/quote]

Telecom Politics in place. :rolleyes:

I do wonder how much this merger will affect the other players though. I guess we’ll find out next year. B)


#4

Number of subscribers will increase plus 4g license FOC or mobilink its a good deal i think ... :)


#5

the only way mobilink and warid merger will benefit the merged unity company will be if they treat 0321 and 0300 people as ONE NETWORK.. like one package for all customers.. if they keep packages and rates for warid vs mobilink numbers, then people will shift to the worst class ufone, or the better than ufone Zong as their preferred choice of network..

i dont know how any of this will have an impact on Telenor though.. anyone's guesses??


#6

I'd rather shoot myself in the head than to switch to the piece of #$%# Maybelink network. Warid definitely has the edge over other networks at least in Lahore, will have to consider my options when they're finally gone.


#7

warid infra structure will probably remain intact serving their own series people while mobilink retains their towers...that would make sense.. all they need is software control over both networks, which itself still exists..just mutual interoperatability will be required after merger..

PS : Ufone sucks ass.


#8

Mobilink has been trying to get all the attention it seems: http://images.dawn.com/news/1174496/i-dont-agree-with-being-objectified-for-my-looks-nargis-fakhri-speaks-out-about-controversial-ad

"Aa raha hai, XXX" :P