A YEAR ago, cooperation seemed unlikely. On September 3, 2009, when Mobitel signed a letter to the government again accusing the newest market entrant, Beeline, of price-dumping, much of the rest of the sector also signed, including qb and Hello.
Cambodia’s mobile-phone sector was not just competitive – that the government had to step in to mediate on numerous occasions last year showed the industry was on the brink of war. But in a market where average revenue per user has dropped to less than US$5 a month – compared with roughly $10 in China and $7 in India – basic economics has left operators in the Kingdom few options but to start collaborating on infrastructure in a bid to reduce climbing investment costs and falling revenues.
Sound like Cambodia’s phone operators are seeking to be efficient then they ever was, by counting the number of cell phone operators is alway rise a question how those firms are operate under profit?. There are about 10 mobile phone operators are operating in the kingdom where consider as one of the poorest country on earth.
Cambodia’s economy is open market economy where there is no restriction to new entry, from the government’s point of view the more firms come to the market the more benefit people will get, in this case consumers are getting benefit of lower cost from mobile phone services due to highly competitive on mobile service market.
Base on information from PhnomPenhPost above, Cambodia’s mobile operators are in the situation where their hands are tight that force to form an alliance in order to lower their operation cost, if we looking at Airline company, strategic alliance was really effective by helping them cut down majority costs. However, in Cambodia mobile market will this strategy work?
From the article, not all mobile operators are agree to form an alliance those including Viettel and Mobitel which are the bigger mobile operators in the kingdom, and small operators are seeking to form an alliance. this will lead to a major competition in the long run, “ Alliance VS alliance”. can this be good or bad to Cambodian?
If we look at developed country such as New Zealand, Australia and UK, there are few mobile operators, government preventing other firms coming to market to protect the existing firms, its totally different from Cambodia. because of less completion the cost of using mobile service is 10 times costly than Cambodia’s mobile service. therefore consumers limit their usage according to their budget which is more efficient of using resources. in Cambodia because of mobile rate is cheap and it drive people to talk more and more, which is wasted time and resources, some people skip their work or even take their time at work to talk on the phone. talking about people talking on the phone while working, that remind me about Starcell tech support, i went to Starcell office which is one of the Cambodia’s mobile phone operators to get my internet connected for my phone, at the Tech support office i saw a guy seating on the chair talking to his girlfriend on the phone while leaving his customers waiting till he finished his conversation, He would do that if the mobile cost is higher than what it cost now.
I believe, Cambodian government should limit the number of mobile service operators to some point where people can afford the call and not too cheap otherwise there will be side affect in the long-run, just imagine when the small firms are withdraw only the big firms who left standing?