To maintain equilibrium in the market is it essential for big sharks to eat out the small ones? Today, one has to keep up with multiple services, and thus multiple service providers, to survive in this news oriented world.A common tech savvy mainly wants a cellular connection, a broadband connection, landline connection, a TV service and an ease to pay utility bills. To acquire these facilities, or necessities rather, one would go to different service providers and have each one of them. Now how facilitating it would be if one operator provides all the required services. This leads to immense need for integration of services as well as service providers.
In the global telecom, IT and media markets we see such mergers and acquisitions a routine thing now. A vendor desperate to maintain an App store, acquires an App developing firm; a network giant desperate to broaden its showcase, acquires voice service providers. So these mergers and acquisitions are a necessity for the market to stay above the average revenue level.
In Pakistan, Telenor Pakistan has been in news whenever talk of mergers makes headlines. Telenor currently provides telecommunications services across the country; not very long ago they also launched their financial services in assistance with Tameer Microfinance Bank, thus highlighting the need to integrate different services and to add ease and value to the lives of its customers. So Telenor might want to become a broadband service provider as well like Orascom’s Mobilink besides being a cellular operator. If this goes on to happen, it would be highly prudent to acquire a small broadband provider than to launch a service of their own.
In the end I shall say, next year when PTA auctions 3G licenses, telecom industry will definitely shape up in one way or the other; might be a cellular operator buying another one or, just as I mentioned, a cellular operator integrating different telecom services to its network.
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