choi baccarat(www.vng.app):Is the proposed Celcom-Digi merger a fair deal?

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FOR the longest time, Celcom Axiata Bhd has been trying to win back market share to be in the top spot in the local mobile scene.

Trying to dislodge leader Maxis Bhd has been a trying experience for Celcom, ever since the latter took the lead over a decade ago.

Now even the once smallish Digi.com Bhd has overtaken Celcom in market share.

It is no denying that Celcom has had legacy issues in the past, but that is history and it has dusted that off quite well.

Historically though, Celcom was synonymous with mobility in Malaysia, having been a player since 1988. It was only in 1993 that the floodgates were opened to competition in the mobile sector.

But times have changed. For example, the Covid-19 pandemic - even though it has caused a lot of pain, it has also changed the business landscape with a spike in digitalisation in all facets of life.

Traditional telecoms players globally are now facing more challenges than ever before. Their once safe revenue streams are being disrupted and the threat is not just from their peers but the ever-evolving over-the-top (OTT) players and tech giants.The way ahead: To survive, mobile players like Celcom and Digi need to form partnerships, collaborations and mergers to be of a certain size and scale to compete

These hungry OTT and tech giants are growing at a fast speed and with 5G on the horizon, more solutions, applications and content will be created.

Consumer behaviour is shifting and expectations are greater.

“Change is inevitable for these traditional players and the OTT and tech giants are a significant threat, ’’ says an industry official.

He said for consumers, basic connectivity is a given. What comes on top of that, such as solutions, content and applications, will differentiate one player from another.

Hence to survive, mobile players need to form partnerships, collaboration and mergers to be of a certain size and scale to compete.The way ahead: To survive, mobile players like Celcom and Digi need to form partnerships, collaborations and mergers to be of a certain size and scale to compete

That is why Celcom and Digi’s parents – Axiata Group Bhd and Norway’s Telenor ASA – are back at the negotiation table.

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