Tag Archives | zain

I assume you all know it by now, the 2 new mobile operators to replace Alfa and MTC Touch will be Orascom and Zain (formerly MTC).

We have been promised since Gibran Bassil became the minister of telecommunication that a third operator might be introduced to the market and hopefully impose competition, which will result in lowering prices (happy us!). I was surprised though that this didn’t happen…

Anyway, while checking the Tayyar.org website today I came across this flash new:

“The contracts between the new operators and the government are different now, the two companies will be profiting from the working phone lines, which will help in lowering prices and providing a better service” (It seems like Alfa and MTC Touch were previously getting management fees only).

Well, let me tell you something Mr. Bassil, what we have in the mobile telephony sector right now is a duopoly, it’s actually a monopoly since the two operators are controlled by the government, but let’s assume it’s a duopoly. Do you know what kind of pricing strategies are followed in such cases? ANYTHING but price wars!

Seriously, come to think of it! They both have almost the same prices, and they’re sharing the market almost equally. Why would they want to go into price wars and risk lowering their profits? In case there will be a price decrease, they will BOTH agree on it. No marketer will ever work against the good of their firm. I doubt there will be a significant decrease in price by the way, we will never reach what’s set in Egypt and other Arab countries for example.

So, Mr. Bassil, you seem to be just like all the previous ministers (until time proves me wrong), you promised us the stars and delivered nothing until now. We’re being robbed and we will always be robbed!

Ya3neh we’re getting raped and might as well like it! Otherwise we get no phone line!