The chief executive officer (CEO) of Norwegian telecom company Telenor Group says the company is looking for “integration opportunities” in Pakistan.
“Telenor will continue to look for opportunities to integrate into Asia,” said CEO Segway Break, according to the Dawn newspaper.
He made the remarks after announcing plans to merge his company’s telecom unit in Thailand with a local company for $ 8.6 billion.
It should be noted that there are four cellular networks in the country which have a total of 187 million subscribers.
Jazz is the largest network with 38.4% market share, followed by Telenor with 26.4%, Zong with 22.2%, and Ufone with 12.1%.
Talking to Dawn, Samiullah Tariq, head of research at Pak-Kuwait Investment Company, said that the European company was looking for stability in Pakistan as the telecom market was shrinking.
“It has become a stable business, not much development, and possible mergers will improve the organization’s performance at the grassroots level,” he said.
“Lack of competition in the telecom sector could hurt the consumer, but the merged entity will have more space on its balance sheet to invest in technology and infrastructure as 5 in 23-2022,” he said. G is expected to be normal.
It should be noted that both Jazz and Telenor are owned by foreign holding companies, which is why they do not publish net profit figures for their Pakistan operations.
However, the latest quarterly accounts released by its holding company show that Telenor Group’s Pakistan business has seen a 12.9% year-on-year increase in operating profit during July-September.
During the same period, its total revenue increased by 3.2%, the company’s subscriber base stood at 48.9 million at the end of September, up 6% from a year earlier.
However, its average revenue per user (ARPU), a key performance benchmark for cellular companies, declined by 10% year-on-year in July-September.
In an interview with Dawn last year, Irfan Wahab Khan, CEO of Telenor Pakistan, said that increasing the number of cellular subscribers in Pakistan was a “challenge” due to the high tax and discriminatory rates.
He told Dawn that in a market like Pakistan, there should not be more than three cellular networks, ensuring geographical coverage, utilizing resources and consequently fierce competition has reduced profits.
It should be noted that Ufone, the smallest telecom operator, is also looking to merge with another telecom operator and if Telenor merges its operations with Ufone, the joint venture has almost the current market leader.