Zong Acquired 51% Shares in Telenor Pakistan - Telecom

According to insider sources, the Zong - Telenor deal has been signed and the news will be announced soon at an appropriate time. The final price of the deal has not been made public but Pro-Pakistan estimate it to be worth around $1.8 billion. What we really need to see is if Telenor and Zong will consolidate or stay separate. The case of consolidation seems strong but it will take some time before complete consolidation takes place. Consolidation is what was long expected in Pakistani telecom industry since it has already reached maturity and growth was not possible in the presence of 5 strong operators.
Let’s see how other companies like Ufone and Mobilink respond to this news. However, it is certain that the industry is going to see some killing competition in terms of prices if the PTA does not use its muscles to bring strong regulations. It is also worth mentioning here that it is the habit of Chinese companies to drop down prices to an extent that the competition is eliminated and once that is done, they create a monoply and rule the market.