Will consumers suffer in the Celcom-Digi merger?

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Title : Will consumers suffer in the Celcom-Digi merger?
Category : Malaysians

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Will consumers suffer in the Celcom-Digi merger?

From Paul Selva RajWill Malaysian consumers suffer due to the merger of Celcom and Digi?The merger between Celcom Axiata Bhd and Digi.com would be one of the biggest mergers in the Southeast Asian telecoms industry. The new enlarged entity will control nearly 50% of the mobile subscriber market share.The number of players in the industry following the merger would be reduced to three from four.Celcom and Digi combined would have 48% of the market share. Maxis has a market share of 28% while U Mobile has a market share of 19%.The merger clearly creates a “dominant player” in the industry. Clearly free market competition benefits consumers through better quality and lower prices, as well as promotes innovation.Market consolidation, especially through mergers, would result in higher pricing and lower levels of service quality due to decreasing competition.Two of the objectives stat…

From Paul Selva RajWill Malaysian consumers suffer due to the merger of Celcom and Digi?The merger between Celcom Axiata Bhd and Digi.com would be one of the biggest mergers in the Southeast Asian telecoms industry. The new enlarged entity will control nearly 50% of the mobile subscriber market share.The number of players in the industry following the merger would be reduced to three from four.Celcom and Digi combined would have 48% of the market share. Maxis has a market share of 28% while U Mobile has a market share of 19%.The merger clearly creates a “dominant player” in the industry. Clearly free market competition benefits consumers through better quality and lower prices, as well as promotes innovation.Market consolidation, especially through mergers, would result in higher pricing and lower levels of service quality due to decreasing competition.Two of the objectives stat…


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