An article in this morning business section of Phnom Penh Post catches my eyes, Beeline, a new mobile operator, is warned by the Ministry of Post and Telecommunication for charging it’s customers too low. It is not clear whether the service that Beeline charges too low is the VOIP or local calls.
It’s weird, as the cheaper the service is better off for consumer (us). But this time, thing is not that simple. Beeline is accused of practice unfair competition activities in free market, buy selling its service cheaper than cost. The warning from MPTC is due to a complaint made by Mobitel, the biggest market share holder of mobile telecomm in Cambodia. Also, Mobitel warns that it will restrict access of Beeline to its infrastructure.
Although it is an unfair competition act, but I don’t think it is necessary for the MPTC step in. Because in a free market environment, it will regulate it self. In simple term, Beeline cannot afford to lose forever, if it is true that it is selling services cheaper than cost. Unless otherwise Beeline is more efficient than the others.
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Tags: activities, BEELINE, Cambodia, cheaper, competition, complaint, consumer, COST, customers, environment, infrastructure, Ministry, MOBITEL, MPTC, operator, PENH, PHNOM, Post, services, Telecommunication, VOIP
2 Responses to “BEELINE WARNED BY MPTC”
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August 28th, 2009 at 10:47 pm
Hi Sir! how are you?
good site, can you link me to your site?
Thank before
Best Regard!
Bkhmer.com
September 16th, 2009 at 3:11 pm
Local calls! From the consumer point of view you’re right but the industry might feel the opposite. Price dumping is good for consumer but it should be at a profitable margin, so-called a ‘fair competition’. From my own opinion, you cannot be efficient to come into the market and ruin the rest like that, if the rest united this new play will be die shortly.