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The Business World From the stock market to the old school barter system

Telekom Malaysia Demerger

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jiinjoo Male
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  #11 Old 31-08-2008 Default

Looks pretty much the same as trying to do a China Netcom and a China Unicom, or Japan's NTT East, NTT West, NTT Docomo, or all the "baby bell" thing. Competition is always good for the people, although in this case there's a little lack of head to head in existing business. But for new businesses there will be a clash and if the processes are transparent enough without favourtism, then both will bid for the best price.

Share prices won't look good after that I think - since competition means both company would earn less than being a monopoly. Both companies will have to move in to new business areas to increase their margins.
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