Dialog will acquire Etisalate

SM2014 · 1 Dialog will acquire Etisalate Mon Oct 20, 2014 8:00 pm

SM2014

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http://www.randora.lk/index.php/lead-article/item/3284-etisalat-dialogue

fff4sl · 2 Re: Dialog will acquire Etisalate Mon Oct 20, 2014 10:48 pm

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May be...

Market R · 3 Re: Dialog will acquire Etisalate Tue Oct 21, 2014 12:16 am

Market R

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As I personaly know Etisalat is the main compertitor of Dialog, not Mobitel.

Nitro 7 · 4 Re: Dialog will acquire Etisalate Tue Oct 21, 2014 1:40 am

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Market R - check other Forum's update for Dialog's competition in detail

caius telefonicus · 5 Dialog will acquire Etisalate Tue Oct 21, 2014 9:12 am

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Extremely unlikely that Dialog will buy Etisalat because of regulatory impediments. The Acquisition of Mobitel by SLT was almost blocked by TRCSL for a number of months as both Dialog and Etisalat (Celltel) raised objections based on potential competition issues in the market place. TRCSL allowed the deal to go through on the basis that fixed line usage was declining world wide and Mobitels market share was at that time less than 25% of the total market at the time of aquisition which indicated that it did not enjoy significant market power in the mobile marketplace.

If Etisalat is sold it probably wont be to an operator who has a presence in Sri Lanka. The operator Etisalat is possibly in discussions with if industry rumors are correct will probably have Dialog, SLT/Mobitel and Hutchinson worried about how they will compete in the future.

Let the games begin

Nitro 7 · 6 Re: Dialog will acquire Etisalate Tue Oct 21, 2014 10:11 am

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Yes, Dialog's Revenue Market Share going above 50% will be a matter but i don't know whether that can be made a block.

SLT and Mobitel - it was a matter of cross subsidization between 2 different companies - fixed and mobile. Ex: SLT to Mobitel free or near free would have been the end for the other mobile operators at that time...

caius telefonicus · 7 Dialog will acquire Etisalate Tue Oct 21, 2014 1:42 pm

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Sorry Nitro but cross subsidization was never an issue Hans ( dialog) and Dumi ( Celltel/Etisalat) floated that issue verbally but it was shot down by TRCSL the market dominance is what the written complaint focussed on. SLT's argument on cross subsidisation was that both Millicom and Telekom Malaysia sustained years of heavy losses prior to turning a profit which meant there was no issue in SLT investing in further equity in Mobitel to fund the GSM conversion. SLT also owned just under 50% of Mobitel as well.

Telecom Act is specific TRCSL needs to give approval for the take over of any network based on the objectives of the telecom Act there are enough international legal precedence for interested parties to apply for a judicial review in the event TRCSL assents to any possible merger between Dialog and Etisalat. There is no way Mobitel/SLT, Hutchinson and Airtel would consent to the merger.

thks

Caius

Nitro 7 · 8 Re: Dialog will acquire Etisalate Tue Oct 21, 2014 1:56 pm

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Monopolies are not encouraged in almost any country and in many industries. In UK, i think over 25% triggers monopoly rules being applied.

SLT to Mobitel (or fixed to mobile) also has a minimum rate - which is Rs 1/- at the moment. Also cross subsidization applies for taxes as well - because profits/costs could be interchanged.