The Federation of Malaysian Consumers Associations (Fomca) expressed shock that a merger was even being proposed, with its vice-president, Ajit Johl, questioning the Malaysian Communications and Multimedia Commission’s (MCMC) motive in not objecting to it.

Ajit told FMT the proposal was a “ridiculous idea” at a point when telecommunications had become an integral part of Malaysian society.

He said the merger would reduce choices in the market, resulting in higher prices for consumers.

“MCMC, which is supposed to put consumer interests first, seems to be playing a role that benefits the mobile service operators,” he said.

“If one of the companies was not profitable, then we can still understand the basis of the merger. But they are enjoying superb profits. So the merger does not make sense except to further consolidate their positions.”

Consumers’ Association of Penang (CAP) president Mohideen Abdul Kader warned that a merger of the second and third largest mobile service operators in the country would result in a sort of monopoly.

He said it should not be approved except under conditions set by the government.

“There must be conditions the two companies must meet, like providing efficient services in rural areas and also improving access in urban areas.

“There must also be a condition that imposes a penalty if these companies fail to live up to the other conditions,” he said.

Yesterday, MCMC said it had no objections to the proposed merger, which could result in the formation of the largest mobile service operator in Malaysia.

It said in a statement it had conducted a comprehensive assessment of the proposal and that Digi and Celcom had expressed their commitment to overcoming issues surrounding competition.