Celcom can be considered as an oligopoly industry in the telecommunication service provider in Malaysia.

Justify the above statement. Thank you

To justify the statement that Celcom is an oligopoly industry in the telecommunications service provider in Malaysia, we need to assess the characteristics of an oligopoly and consider relevant factors specific to Celcom and the telecommunications industry in Malaysia.

1. Definition of Oligopoly: An oligopoly is a market structure in which a few large firms dominate the industry. These firms have significant market power and can influence prices and market conditions.

2. Market Concentration: Celcom, along with two other major players, Maxis and Digi, dominate the telecommunications industry in Malaysia. These three companies hold a substantial market share and exert significant influence over pricing and market dynamics.

3. Barriers to Entry: The telecommunications industry in Malaysia has high barriers to entry, such as the need for substantial infrastructure investments, government regulations, and spectrum licenses. These barriers make it difficult for new competitors to enter the market and challenge the established players like Celcom.

4. Competition: Although there are other smaller players in the telecommunications market, the market share and influence of Celcom, Maxis, and Digi significantly outweigh those of their competitors. These three companies tend to compete with each other rather than the smaller players, further indicating their dominant position in the industry.

5. Pricing Strategies: In an oligopoly, firms tend to engage in strategic pricing behavior. Celcom, Maxis, and Digi often adjust their pricing plans and promotions in response to each other, demonstrating their awareness of the other companies' actions and the impact it can have on the market.

6. Non-Price Competition: Oligopolies often engage in non-price competition to differentiate their products and maintain market share. Celcom, Maxis, and Digi invest heavily in advertising, network coverage expansion, and service quality enhancements to attract and retain customers, indicating the presence of non-price competition in the industry.

Considering these factors, it can be justified that Celcom, along with Maxis and Digi, operates in an oligopoly structure within the telecommunications service provider industry in Malaysia.