Telenor sees potential in Pakistan

www.WirelessFederation.com/news: It has been announced by telecom operator Telenor that the operators are not generating enough profit per phone user to have five mobile groups in Pakistan.  The operators would have to consider mergers or acquisitions to see significant growth.

Telenor made its entry into Pakistan exactly five years ago and currently it is the second largest cellular phone operator after Mobilink, a subsidiary of Egypt’s Orascom Telecom.Pakistan’s. The other mobile operators include Ufone, Warid Telecom and Zong.

Telenor is considering a broader expansion in Pakistan along with India, Thailand, Malaysia and Bangladesh. 26 per cent of revenues in 2008 by the company were generated in Asia. The rest of the income came from eastern and central Europe and the Nordic region.

Telenor’s has been concentrating its attention  on its 67.3 per cent investment in Unitech Wireless of India but big potential is also seen in Pakistan, which has seen a phenomenal increase in the number of mobile phone users over the past decade.

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www.WirelessFederation.com/news: Some signs of recovery are expected to be seen in the fourth-quarter results from European operators even though the regulatory drag on revenue is set to persist. Foreign exchange is expected to be a major driver with the dollar rally boosting Deutsche Telekom and Vodafone.

The theme of the telecom sector in Europe will remain the same namely mergers, acquisitions and cooperation agreements and more deal is expected to come after the merger of Orange and T-Mobile in the U.K.

According to the analysts, European telecoms operators have two options, either to postpone investments further to remain focused on free cash flow and preserve the financial flexibility that an uncertain environment requires, or use the financial flexibility created in the sector in 2009 to upgrade both fixed and mobile networks to repurpose the old voice model.

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BEIJING (XFN-ASIA) – The government has approved 14 applications by foreign companies wanting to merge with Chinese telecom companies, the Information Times quoted a senior government official as saying.

The 14 are among 29 companies which this month submitted applications to merge with Chinese telecoms after entry barriers to the local telecom market were relaxed, the newspaper quoted Wang Jianchao of the Ministry of Information Industry’s (MII) planning division, as saying.

Wang said foreigners can enter China’s telecom value-added market through mergers.

‘Foreign telecom companies can operate in the telecom business in China by merging with domestic companies, and established joint ventures can also apply for telecom services,’ Wang said.

Foreign investors cannot hold more than a 50 pct stake in the joint ventures, the report added.

Source- http://www.forbes.com

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