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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MNP gets govt approval in India

www.WirelessFederation.com/news: After a series of postponement and hassles that surrounded the implementation of Mobile number portability in India, the service seems to have come a step closer to reality as Ministry of Home Affairs (MHA) has given clearance to one of the companies selected to oversee the process.

Department of Telecommunications (DoT) selected Telcordia joint venture MNP Interconnection Telecom Solutions (MITS) India in March 2009. The move was taken to administer MNP in southern and eastern states, however, the ministry revealed in December 2009 there were security concerns over the ownership structure of MITS.

As a result of the delays caused by the reconsideration of the company’s status the launch of MNP would be pushed back from a March deadline to May. After the revelation that the ministry had reissued the clearance for MITS at a meeting held by the Foreign Investment Promotion Board (FIPB), the new timeframe looks reasonable.

After reexamining the matter, no objection has been conveyed by the ministry to the proposal subject to addressal of the certain issues. According to MHA, suitable conditions are imposed to ensure that the equipment and services provided to India or to any Indian associate company would have no connection with its operating company in Pakistan.

www.WirelessFederation.com/news: Mr. Mehboob Chowdhury has been named as the new CEO and Mr. David Lee as the new Chief Operating Officer of Bangladesh based mobile network operator, Citycell, at present owned by Singtel, Pacific Group and Far East Telecom.

Currently, Mr Chowdhury is the Chairman of South Asia Mobile Forum. Earlier, he was the Director Sales and Marketing of Grameenphone and later Chief Commercial Officer of Banglalink. Mr. Lee previously worked as Deputy Chief Commercial Officer at Pakistan’s Warid Telecom.¬

According to Citycells new CEO Mehboob Chowdhury, as the country’s lone CDMA mobile phone operator, Citycell has already achieved a lot in gaining customers satisfaction and is moving towards to offer better products and services and in his new role he will work towards making Citycell the most preferred telecom operator of Bangladesh.

www.WirelessFederation.com/news: Lowest average revenue per user has been delivered by Etisalat’s Pakistani subsidiary when compared to its other overseas operations. Etisalat generates ARPUs of $49 in its home market while Pakistan Telecom Company’s (PTCL’s) ARPUs have fallen to just US$3.

According to Etisalat chairman Mohammad Omran, the telco is increasing its focus on its international operations where its subsidiaries contribute 10% of revenues but the company aims to increase this to 20% by 2013.

Etisalat’s acquisition of 26% stake in PTCL for $2.6 billion in 2005, which was completed after facing a stiff competition from China Mobile, SingTel and others, failed to live up to Etisalat’s expectation.

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MNP soon to become reality in India

www.WirelessFederation.com/news: The much awaited service of Mobile Number Portability (MNP) will soon be implemented in India as the Union home ministry has finally agreed to give a conditional security to the Telcordia Technologies’ proposal to implement MNP.

Any staff of the US-based telecom firm, who has worked in Pakistan at any point of time, will not be employed in the Indian operations.

MHA’s conditional nod to Telcordia’s MNP venture will be conveyed in written to FIBP. The final FIPB nod will clear the decks for the introduction of MNP. Through this service the mobile subscribers will be allowed to switch to another service provider, while retaining their numbers.

www.WirelessFederation.com/news: The license fees for commercial radio-based services is planned to be increased by the Pakistan Telecommunication Authority (PTA) in order to ensure an efficient use of available spectrum.

The views of the operators has been asked by the regulator before implementing new spectrum charges for services including Land Mobile Wireless, Point-to-Point (P2P), Broadcasting, and aeronautical and maritime communications.

769 licensees are currently there in the categories including 495 private licensees and 251 government licensees.

An increase in annual spectrum charges after lapse of ten years is considered in PTA’s proposal to maintain the quality of services and manage the demand for frequencies amid increasing demand.

www.WirelessFederation.com/news: Evo wireless broadband service based on EVDO Rev A network technology has been launched by Pakistan operator PTCL. The service offers download speeds up to 3.1Mbps and the average speeds vary from 300Kbps to 500Kbps for downlink and 200 Kbps to 400Kbps for uplink.

By paying PKR 2,000 per month, unlimited services can be availed by the customers via PCMCIA cards and USB devices.  Karachi, Lahore, Islamabad, Rawalpindi and Mirpur currently receive the coverage.

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www.WirelessFederation.com/news: Telenor’s Q4 profit grew 25% year-on-year despite quarterly and annual declines in revenue because of increasing subscriber numbers in Asia.  Net profit hit 2.5 billion kroner (€308 million) from 1.9 billion kroner even after sales fell from 29 billion kroner to 26 billion year-on-year.

The quarterly and annual growth of the operator is contributed by growing number of subscribers at Telenor’s operations in Pakistan which added 842,000, Thailand which added 386,000 users, and Bangladesh which added 1.2 million subscribers, thus ending 2009 with a total of 174 million subscribers.

According to CEO Jon Fredrik Baksaas, 2009 results reflect the firm’s focus on geographical presence and reorganization of its activities and he also predicted single digit growth in organic revenues for 2010, and EBITDA margin of 27%-28%, excluding other income and expenses.

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www.WirelessFederation.com/news: Reports regarding the sale of stake in the Pakistani telecommunications operator Warid telecom, owned by the Abu Dhabi Group, have been denied by the company.

According to Bashir Tahir, the chief executive of the Abu Dhabi Group, Warid Telecom Pakistan is not being sold off but rather is on course with its expansion plans.

Earlier it was reported that the Abu Dhabi Group is in talks with several groups to divest a considerable shareholding along with management control in Warid Telecom. The deal would have created the largest mobile phone operator in the country.

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www.WirelessFederation.com/news: In order to sell controlling stake in Warid Telecom, the Abu Dhabi Group is in talks with several Pakistani telecommunications groups. If the deal materializes, it will create the largest mobile operator in the country. Although, the company denied revealing the size of the stake, it made it clear that it was looking to offload a sizeable shareholding along with management control.

30 percent stake in Warid Telecom’s Pakistani network was sold by Abu Dhabi Group in July 2007 for USD 758 million in a deal that valued the whole company at USD 2.9 billion.

According to Sheikh Nahyan bin Mubarak, the Minister of Higher Education and Scientific Research and chairman of Abu Dhabi Group, the company is negotiating with PTCL and Telenor.

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