Corporate Merger of the telecom sector: Perspective from a Developing Country

Contributing Author(s)

Mahmud Habib Zaman
Lecturer, School of Business & Economics, North South University, Dhaka, Bangladesh 

Hafsa Maryam
Assistant Professor, Faculty of Business Administration, American International University –  Bangladesh (AIUB), Dhaka, Bangladesh 


Citation: Zaman, M. H. & Maryam, H. (2016). Corporate Merger of the telecom sector: Perspective from a Developing Country. International Journal of Business & Management (Toronto), 3(2), 1-12.


Abstract

The purpose of this paper is to highlight the merger process of the two telecom operators in Bangladesh (i.e., Robi Axiata and Airtel Bangladesh). Using existing literature, the antecedents of the merger and the possible changes in the telecommunication sector are presented. The imposed fees (i.e., merger, spectrum fees) and pressure from competing firms (along the legal and social influences) faced by the new entity are discussed. Being the first merger in the telecommunication industry of the country the opportunity and risks are both high for both the organizations and concerned stakeholders. To best of our knowledge, this is the first paper depicting this merger of the Bangladeshi Telecom industry from an academic standpoint.

Key Words:

Merger & Acquisition, Telecommunication, Developing Country, Bangladesh