Mobile Promotions Draw Warnings From Telecom Regulator

Locals engrossed in their mobile phones sit in deck chairs at a beach in Sihanoukville. Cambodia’s leading mobile network operators have engaged in an apparent price war in recent weeks.

Mobile network operators were warned yesterday about engaging in a price war by the Telecommunication Regulator of Cambodia (TRC), after remarkable promotional packages were launched in recent weeks by two of the leading companies.

Smart Axiata’s new deal allows subscribers to exchange $1 for $125 worth of on-network data, calls and messaging services until the end of this month. Meanwhile, Cellcard have already been called in by the TRC to discuss alleged predatory pricing on their promotion that turns $1 into $100 worth of mobile services.

The TRC are to set up a team to investigate these products, which appear to be unprofitable and an attempt to manipulate the market. “This has not happened before and it is very suspicious,” said TRC spokesman Im Vutha.

“This unfair pricing makes it difficult for all operators because some have to compete despite their products not being able to cover costs,” added Vutha. “We need to address unfair pricing because operators are now competing to sell products that do not work.”

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