Malaysia govt should not push telco mergers, says analyst

By Julian Matthews

KUALA LUMPUR–The Malaysian government should back-away from attempting to merge the six telcos in the country into three as it would do more harm than good to the industry, says a Gartner Group analyst.

“Consolidation is necessary. But when the government intervenes, it risks delaying an inevitable process. Government intervention tends to strengthen the hand of the weakest and undermine the fittest. That will not strengthen the sector,” said Bertrand Bidaud, director of telecommunications for the Asia-Pacific Gartner Group.

Bidaud said intervention by governments elsewhere has not been positive citing France Telecom, Deutsche Telekom and several Asian mergers that remained “superficial”.

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