Background Of Company Telekom Economics Essay


In economic field, there are many types of market construction. The common market structures that we all knew are perfect competition, monopoly, monopolistic and besides oligopoly.

In this assignment, we will set precedence on monopoly and perfect competition. As we all knew that, monopoly is a state of affairs where there is one marketer which the house is the industry and many purchasers in the market whereas monopolistic is a type of market construction where a big figure of houses produce near but non perfect utility merchandise.

In this assignment, our group has chosen Telekom Malaysia as the illustration of company that patterns monopoly construction. Throughout this group assignment, we managed to establish a batch of information about Telekom Malaysia. The information are shown below:

Background of Company ( Telekom )

Telekom Malaysia BHD ( TM ) is the first telecommunication monopoly company in the state that still remains top telecom group and a aggressive international participant in the Asiatic part. The company continues to command the fixed-line telecom market with more than 4.6 million entree lines.

In add-on to the fixed-line concern, TM is one Malaysia ‘s prima cellular telephone supplier and taking Internet supplier, TMNet, which is besides the exclusive broadband supplier in the state. In add-on to their operation in Malaysia, TM has developed a web subordinates and investings internationally with the focal point on Asiatic part. In 2005, the company is listed on the Kuala Lumpur Stock Exchange.


In monopoly, there are many characteristic. One of the feature is that there are no competition between the companies as it is merely marketer in the market. Telekom Malaysia is the largest telecommunication company in Malaysia. It has a monopoly on the fixed line web.

Besides that, there are many purchasers in the market. Since Telekom Malaysia was build, many citizens in Malaysia started to utilize their services. It besides has a considerable market portion of the nomadic communications market after acquisition of Celcom and TM Touch. Not merely have that, Telekom Malaysia right now besides offered narrowband and broadband connectivity which is now the DSL broadband supplier in the industry.

Third, the feature of monopoly is that the house enjoys unnatural net incomes. Because there are no other rivals, the house has the power to monopolies the monetary value of their goods and services. In this affair, the consumer have no other pick, so they will either take or go forth the merchandise.

The last feature of monopoly is barriers to entry which the house will cut down the ability of new houses to come in the market and compete.

Advantages and Disadvantages between Monopoly and Perfect Competition

There are some advantages and disadvantages of monopoly. First, the advantage is monopoly has merely one house and the market is the monetary value shaper. Hence, the monetary value of the goods and services will be stable. Second, due to the absence of the competition, monopoly house can have the maximal net incomes from their gross revenues.

On the other manus, the first disadvantage is a high monetary value of a low quality good and service may be charged on the consumer. Second, because of no competition may take to low quality and outdated good and service.

There are besides some advantages and disadvantages of perfect competition. The first advantage is due to the presence of the competition, consumers can acquire a lower monetary value of the goods and services. This is because all the houses produce indistinguishable merchandises and the houses are monetary value taker. Second, in the perfect competition, the houses must vie to each other to increase their gross revenues. Because of this state of affairs, it will promote each house ‘s efficiency and it will besides promote faster economic growing.

However, perfect competition has disadvantages excessively. First, unevenly of the distribution of the goods and services because of the allotment of resources is determined by the distribution of income. Second, outwardnesss are ignored. For illustration, when there are external benefits, excessively small goods are produced and when there are external costs, excessively much goods are produced.

Comparison between Monopoly and Perfect Competition

In the perfect competition, there are a big figure of purchasers and Sellerss in the market viing with each other. The monetary value fixed by the industry is accepted by all the houses runing in the market. While in the monopoly, there is merely one individual marketer but a big figure of purchasers. Hence, the houses are monetary value shaper and they all decide the monetary values.

Besides that, a absolutely competitory house makes merely normal net income in the long tally. This is because there is freedom of entry and issue. But under monopoly, the house continues gaining net incomes even in the long tally since there are strong barriers to the entry of new houses in the monopolistic industry.


In a nutshell, throughout this assignment, we are able to larn more about monopoly and monopolistic market construction. Apart from that, our group members and I besides learnt that we have to work together efficaciously and expeditiously to do certain our undertaking acquire done good.

Although we faced some challenges and troubles when making this assignment, but we still make through it with everyone ‘s coaction. Besides that, we have besides learnt about the forte of monopoly and monopolistic market construction in economics position.

Therefore, we can use it during category as we have already learnt deeper on them. Last, economic sciences is of import because it can be used in our day-to-day life no affair for the present or in the hereafter.