Thursday, May 17, 2018

Telikom PNG and Bmobile-Vodafone merger to be completed by 2019

Merger of State telecommunications companies Telikom PNG (TPNG), Bmobile-Vodafone and Dataco are set to be fully completed by mid 2019 under the new Kumul Telikom Holdings (KTH).
Chairman of KTH Andrew Johnson gave the status update of what he described was an evolutionary merger of peer companies rather than a takeover as assumed by some.
“The status is we are doing it in a rather evolutionary, rather than a revolutionary way, we don’t want to just bang the business together we want to bring it together.”
“The model that we will end up with which we are steadily working towards is an independent wholesale business which is DataCo, and then a retail business which will be a retail fixed (line) and media and a retail mobile business- that is not to say Bmobile-(Vodafone) becomes the mobile business and TPNG becomes, we will basically transform those businesses into those specialised in fixed, those specialised in mobile and overview the wholesale business.”
“Where we are we are probably a third of the way through that exercise,” Mr Johnson said.
He said issues surrounding industrial relations were part of the process surrounding the merge, but added they were being addressed and resolved.
“Key concerns rightly from the unions were whether we were going to protect all of their rights.”
“What we have said is no ‘ifs’ and no ‘buts’ and legal rights that you have under employment conditions are absolutely going to be protected, certainly the minister (State Enterprise Minister William Duma) has said that.”
“We are certainly working through the changes and we will have the business transformed probably around this time next year in my judgement,” Johnson said.
The chairman dispelled talk on any one of the three businesses taking over from the other.
“This is not like what you normally see when companies come in and the new group take over the other, it is a merger of peers.”
“People will move within the company to the area which is appropriate for them to absolutely, BMobile isn’t going to take over TPNG mobile business.”
“There will be a Kumul Mobile and there will be a Kumul Fixed (line service) and there will be people who will come out of Bmobile who will end up in Dataco or whatever,” he added.
It is truly merging a business, the concept I cant stress strong enough, the concept of takeover there is none.
Post Courier
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