Logo of Phnom Penh Post newspaper Phnom Penh Post - Telecoms ordered to end promotion offers

Telecoms ordered to end promotion offers

Telecoms ordered to end promotion offers

The government has repeated its call for the country’s telecom operators to end their alleged predatory pricing of mobile consumer plans, giving firms until the end of the month to change the terms of their promotions.

The Ministry of Posts and Telecommunications (MPTC) issued its warning following a meeting last Thursday between the ministry, regulators and representatives of the country’s major telecom operators.

Ministry officials claimed the promotional packages with some offering their customers to exchange up to $2 for $2,000 worth of on-network calls and data went against the principles of fair competition outlined in the Telecommunications Law.

According to the MPTC release, telecom firms have until March 31 to change their pricing, which officials deemed unsustainable and detrimental to the health of the industry.

Anthony Galliano CEO of Cambodian Investment Management, said the deep discounts offered by the competing telecom operators appeared aimed at increasing recurring subscriptions to raises average revenue per user ARPU without a material impact on profitability.

“The game plan appears to be to seduce the subscribers into phenomenal super deals, with a marketing strategy that prompts reoccurring renewals, thus increasing weekly and monthly subscriber ARPU,” he said.

Galliano noted that so far regulators have chosen a mostly hands off approach to the problem, while the Kingdom’s three biggest operators are able to protect their market share from less-established competitors.

“The leading three operators are protecting their market position against new entrants and will not measurably suffer at the margin,” he said.

“There is no imminent market disintegration, however, new players will unlikely gain any new ground in converting customers from the top three and effectively they therefore suffer the gravest consequences as result of the pricing competition.”

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Hun Sen: Manet to be candidate for prime minister

    Prime Minister Hun Sen has reaffirmed that his oldest son Hun Manet will be his successor as Prime Minister if he is elected. Speaking during the inauguration of a new sewage treatment facility in Preah Sihanouk province on December 2, Hun Sen said Manet will be