Tuesday 5 October 2010

How dose the telecom operation make a lot of profit ?

Vimpelcom,Russian giant telecom company, and Weather Investment headed by Egyptian telecom tycoon Naguib Sawiris, have agreed to merge their assets. This deal will create the world’s fifth-largest mobile operator.

Vimpelcom deals with Egyptian company to merge the capital. This deal Vimpelcom will get many benefit such as stake in Italian mobile operator and Egypt’s Orascom Telecom while Weather Investments,Egyptian company, get stake from Vimpelcom.
Combination of business between Vimpelcom and Weather Investment will rise up the capital and expand operation area.

In nowadays, Communication is very important. Mobile phone becomes a part of life which it supports for telecom operation company. It gets a lot of profit although this business uses a lot capital for investment. Vimpelcom has a vision to deal with other company for raising up the capital. I think this investment will make a lot of profit to Vimpelcom if it invests in many countries. And this business is not general business which everyone can do but it is specific business. It must approve from government in country that company invests. So this business can make a lot of profit.
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References
Russia and Egypt telecom firms in $6.6bn deal. (2010, October 5). BBC News. Retreved October 5, 2010 from http://www.bbc.co.uk/news/business-11477861

3 comments:

  1. I see something from your second news post that you're really interested in Russia. Am I right or wrong?

    For more informations, Weather Investment,especially for wind operation and wind mobile operatoring, is starting to be popular in Greek,Italy and Norway. Because they can produce consistent energy more than the solar system and all of them have their boundries near the sea. (This response is coming from my knowledge.You can correct any mistake that you find.)

    I agree with you that Vimpelcom consists of specific gualificaion to deal this bussiness. For the beginning, they have a good start point since they're really understand each other and know how to deal with another counties. A long time ago, the Achaemenid Empire consisting of germany, russia, egypt, etc. are shown that they have the same infuent civilization.

    If you really know the backgrounds and genuine concern, you can choose the best starategy to deal business and get ton of profits.

    ReplyDelete
  2. Nowaday, merging business is a trend, which happen around the world. In Thailand, there're not only telecom businesses such as AIS and Temasek, we also have banking and retail business that takeover by big foreign company. When your business cover main part of market share, you can take more advantage than the small one such as you can define pricing and margin of your product. And this value will makes a small business run down soon.

    ReplyDelete
  3. I just feel surprising. Why do far company merge with each other or it is not merging but it is taking over?


    I agree with Nu the merging of international companies makes small businesses be hard to survive. Moreover, everyone knows that most merging make huge profits to new firms but no one know how much benefit return to public. Some of merging turn to monopoly market which no one can proof the qualities and prices of services or goods such as in Argentina, where there was only one telephone operation which it have a bad quality and a high price.

    ReplyDelete

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