Big Telco Calls it Quits in Pakistan: Was it a Match Made in Heaven Gone Wrong?

Running a business isn't always sunshine and roses. This is especially true if you're a foreign company venturing into a new market. That's the situation Telenor, a major telecom giant, recently faced in Pakistan. The company decided to pack its bags and head for the exits. But why? Let's unpack the reasons behind Telenor's departure and see if there's a bigger story here.

Profiting can be a Challenge

According to Telenor's CEO, Sigve Brekke, doing business in Pakistan comes with its fair share of hurdles. One of the main reasons for their exit? Difficulty in getting their profits out of the country. Imagine investing your money in a business, but then struggling to see any returns. That's not exactly a recipe for a happy investor!

Contrasting Tales: Pakistan vs Bangladesh

Interestingly, Telenor's experience in neighboring Bangladesh paints a different picture. There, they seem to be doing just fine, even taking out dividends (a fancy way of saying they're making money). So, what's the difference? Brekke suggests it might boil down to smoother regulations and a more investor-friendly environment in Bangladesh.

A History of Movement

Telenor isn't new to the game of musical chairs. Over the past two decades, they've invested in several Asian countries, including India, Myanmar, Thailand, and Malaysia. They've merged with some companies (like Airtel in India) and sold others (like their Myanmar unit after a military takeover). In some cases, like Thailand and Malaysia, they merged to become bigger players in the market.

Why Pakistan Didn't Work Out

Telenor claims their exit from Pakistan wasn't just about profits. They say the market wasn't big enough to support multiple major players, unlike Bangladesh where they hold a strong position. In simpler terms, the Pakistani telecom market might be crowded, making it difficult for Telenor to stand out.

So, What Now for Pakistan?

Telenor's departure might raise some eyebrows, but it doesn't necessarily mean doom and gloom for Pakistan's telecom sector. The local company, Pakistan Telecommunication Company Limited (PTCL), is taking over Telenor's operations. This could lead to some changes, but hopefully, it'll also ensure continued growth and innovation in the Pakistani telecom industry.

The Final Buzz

Telenor's exit from Pakistan is a reminder that foreign investment can be a double-edged sword. While it can bring in new technologies and expertise, it's also influenced by factors beyond just the business itself. Only time will tell how this story unfolds, but one thing's for sure: Pakistan's telecom sector will continue to evolve, with or without Telenor.

Disclaimer.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Also please note that content on this platform may be subject to copyrighted material. If you believe we have used your content in any way then please get in touch with us. We will take down your content immediately.