Consolidation on Horizon as Mobile Operators Enter Talks

Cambodia Advance Communications Ltd, operating under the brand qb, is in talks to either merge with or acquire Thai majority-owned Mfone, a senior government official said yesterday. The talks come amid recent speculation that operators in Cambodia’s oversaturated telecommunications market would have to consolidate in order to stay afloat. Minister of Posts and Telecommunications So Khun said that the two mobile operators formally began negotiations earlier this month, although he was not certain when a deal would be made. “Yes, they are in negotiations. They are not losing profit, but they want to find more capital, and when they join together, it will be easier for them,” he said. Mr. Khun also said that another possible deal between Hello Axiata and Russia-based Smart Mobile was in the works, but later backed down from the statement saying he was unclear at what stage talks were at. “Now, there will only be eight mobile operator companies in Cambodia because four companies will merge to make two companies [if the deals go through],” he said. Cambodia currently has 10 licensed mobile operators. … Marc Einstein, senior industry analyst at research firm Frost & Sullivan, said that Cambodia has one of highest numbers of mobile operators per capita in the world. …