If the Airtel-Telkom Merger Means Well For Consumers, Why Object It?

The Airtel-Telkom merger should be allowed to happen if the consumers are going to benefit from it.

Customers are the main reason why businesses are started, and meeting their needs would require a lot of factors because they will be the reason why the entity is deemed as a success or a failure.

In a market where there are many sellers (business ventures) consumers are likely to benefit as compared to that of a few or a single venture.

A merger is supposed to bring together two or more business enterprises, who have voluntarily agreed to join forces, pooling resources and combining ideas with the aim of attaining and improving customers’ needs.

A market that is dominated by a single player is flooded with more disadvantages as opposed to the advantages it would bring to the customers and the society at large.

A monopolistic market structure is characterized by the following disadvantages;

1.Fewer or no entry to the market by sellers.

A single-business dominated market has restrictive measures that are unfavorable to the businesses that want to join the market, giving room for very few or zero entry to the market.

2.Customer exploitation.

A monopolistic market structure is prone to exploiting consumers in terms of prices and rates of both products or services. The main market player is likely to increase prices of commodities or services, and since consumers have few choices, they will have to adhere to them.

3.Low innovation and inventions.

The rate at which new products or services will hit the market will be very low owing to low competition.

The dominant market player tends to be reluctant when there are no competitors and thus discouraging inventions and innovations. This will, in turn, lead to low investment and production rates.

4.minimal or limited consumer choice

A market dominated by one player leaves the consumer with few choices and sometimes no option.

The consumer will either go for the product or live without it. This is so discouraging to customers who like exploiting multiple choices and getting to decide on which one is better and which one can be left for a later date.

What the Airtel-Telkom merger has in store for the customers

Now that we know what a non-competitive market looks like and the disadvantages it would bring to the customers, we should be able to understand why a merger is important to the telecommunication sector.

The Airtel-Telkom merger seeks to improve the consumers and spoil them in terms of choices and quality of services.

The merger is set to bring more products and services to the market through continuous and persistent inventions and innovations.

The Airtel-Telkom merger is an effort to improve the quality of services offered to the esteemed customers ranging from airtimes, internet provision, and other important customer preferences.

According to Telkom’s managing Director, Mugo Kibati, in a stunted market, the telco sector would grow and this will roll back Kenya’s leading role in technology across the region.

The merger will create a vibrant telecommunication industry offering consumers better choices and value for their money.

This would be done by offering affordable airtime rates, bundle rates and boosting the network across Kenya and beyond.

The main idea is to increase competition to avoid market dominance by one single player.

A survey conducted in the second quarter of 2019, showed that Telkom Kenya is ranked top in terms of consumer relations which were attributed to great internet and call offers.

Combining the quality of services, products and great minds between Airtel and Telkom, would obviously mean a whole new and fleshy deal for the customers.

The betterment of the quality of products and services for the consumers is all the Airtel-Telkom merger wants, and for that reason, the deal should be supported without questioning.

Read Also: Airtel-Telkom Merger is Critical for the Kenyan Telco Consumer