October 5th, 2009 
Cambodia Economy In the last few years, the telecom section in Cambodia is progressing strongly. Strong completions between existing and newest mobile phone operators have been leading the call price rate lower and the increase in number of mobile telephone users from year to year. Until now, there are 9 mobile phone service providers and three desk telephone companies.
The pricing war between mobile phone firms occurred in the ongoing several months. Leading mobile phone service provider, MobiTel, strongly criticized newest competitor ‘Beeline’ of irresponsible business practices because the company has charged customers only 5 cent a minute for calls between networks after Beeline launched ‘Boom’ tariff. And then MobiTel also refused to continue the process of the cross-network connectivity.
In responding, Beeline announced the full-page ads in local newspapers saying that “contrary to media speculation” it had met its obligations of the agreement- which also required MobiTel to stop blocking cross-network connectivity, by stop taking new users on its “Boom” tariff from September 01.
Other phone service providers, however, also said that in keeping pricing at $0.05 per minute for existing customers on the controversial “Boom” tariff “forever”, Beeline had effectively failed to abide by its agreement.
Russian Telco Vimpelcom Group, which runs Cambodia’s newest mobile operator Beeline through local subsidiary Sotelco, saw its shares reach their highest level this year at US$19.05 by the end of trading on Nasadaq exchange in New York.
MobiTel held a 55 percent share of the phone market at the end of last year while Axiata’s Hello, the No 3 operator, had a 15 percent market share.
Five mobile phone operators, including MobiTel, Hello, Smart Mobile, qb and Mfone sent letter dated September 3 to the Ministry of Posts and Telecommunications (MPTCO) requesting urgent action, by accusing Beeline of violating an August 14 promise to raise cross network tariff from US0.05 to $0.06 per minute.
“The issue of Beeline’s cross-network pricing had concerned most of the sector – as had blocked interconnectivity – but that it was still unclear what legal redress could be used in Cambodia’s increasingly competitive and complex mobile sector,” the Phnom Post quoted Smart Mobile’s CEO Thomas Hundt as saying.
In order to handle the ongoing dispute between mobile operators MobiTel and Beeline firms over alleged price-dumping and blocking of interconnection, Ministry of Posts have created a temporary task force chaired by Secretary of State Sarak Khan.
Telecommunication sector has experienced quick growth, particularly in the mobile phone field, where there are more than 4 million of phone’s users so far. And the state earns not less than US$30 million per year.
Opposition party’s lawmaker, Son Chhay, sent September 14 letter, signed off by President of National Assembly, to the Minister of Post and Telecommunication demanding an explanation of the ongoing battle between telecom firms, MobiTel and Beeline. He also said that some officials of the ministries of Telecommunications and Finance protect the business of companies and possible personal interests in the telecom sector.
At the present, there are nine licensed mobile phone companies (Mobitel, Mfone, Hello, Starcell, qb, Viettel, Smart Mobile, Excell and Beeline) and three table mobile phone companies in Cambodia (Telecom Cambodia, Camshin, and Cammintel of the State).
At the mean time, people also expressed fear that mobile phone towers set up on high-rise building or on the ground cause health problems such as headache, causing infertility. Especially, they are afraid that during rainy season, those towers attract lightening.
In answering to the concerned issues, Workshop about “mobile phone technology and its effects” was held by the Ministry of Post and Telecommunications. Experts from different telecommunication companies participating in the workshop confirmed that when setting mobile phone tower systems, each company always sets up lightening rods, devices against lightening strikes, and the effect on the people is minimal.
Beeline is the first mobile operator in Cambodia to offer the “GPRS without setting” service which will be available to all its subscribers and they can enjoy using the internet and receive calls without interruption at the same time.
In the last few months, Minister of Information announced that all advertising platforms from billboard to newspapers stop the dissemination of mobile phone advertisement that prompt clients to use and talk by phone for a long time because of the large numbers of mobile phone advertisements. By the way, the statement read “the content of these advertisements are concerning parents that their children do not have enough time to study.”
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