Pakistan Telecommunications Company Ltd. (PTCL), owner of mobile carrier Ufone, may be on the lookout to buy another mobile service provider ahead of the 3G auction expected this year. According to reports, Walid Irshaid, CEO, PTCL has said that he doesn’t rule out any acquisition and that they are not selling but are infact buying. He further said that Pakistan cellular rates are the cheapest in the world and cannot continue. He added that the market has to consolidate; otherwise this will be a losing proposition for every operator.

As per sources, the government may auction 3G bandwidths this year, but is yet to specify how many licences would be up for grabs among the country’s five mobile service providers. Mr. Irshaid also claimed that there can’t be five 3G operators when the revenue per user is too low and that there should be only two or three operators with better control on prices.

 

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Pakistan Telecommunication Authority (PTA) ­has announced that Pakistan has signed up its 100 millionth mobile phone subscriber at the end of last year.

Mobile services in Pakistan started in 1995 and three operators Instaphone, Paktel and Mobilink were providing services to only 68,038 subscribers on exorbitant rates. In order to give choice to the people of Pakistan, Ufone a subsidiary of PTCL was given license to operate mobile services in year 2000.

With the consent of the Government the Regulator implemented the Calling Party Pays Regime in 2001which gave boost to the subscriber base and it crossed 1 million in 2002. In 2003 deregulation was introduced in the mobile sector of Pakistan through Mobile Cellular Policy.

Telenor & Warid were awarded two new mobile licenses in 2004 against the price of 291 million dollar each and they started their operations in 2005. There was competition with 6 operators which gave boost to mobile subscribers’ base and it crossed 12 million in 2005. Telecom Industry showed signs of maturity with competition in 2007 and operators were providing services to 68 million subscribers. In 2009 subscribers crossed figure of 95 million. In June 2010 mobile subscribers reached 99.4 million.

At the end of the year, they officially passed the 100 million mark.

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The new India-Middle East-Western Europe (IMEWE) submarine cable would allow further increase in the international traffic on the Pakistan Telecommunication Company Limited (PTCL) network and may lead to 20 per cent growth in earnings over the last year, an official said on Monday. “Being part of the IMEWE consortium, the company invested over US$52 million in this project out of total investment of $480 million,” the PTCL official said.

The other partners of the consortium are Bharti Airtel, Etisalat (UAE), France Telecom-Orange (France), Ogero (Lebanon), Saudi Telecom Company Stc (Saudi Arabia), Telecom Egypt (Egypt), Telecom Italia Sparkle (Italy), and Tata Communications Ltd.

He said the demand for international bandwidth was continuously growing due to rising level of bandwidth penetration, video traffic, and by application of offshore call centres.

Huawei Technologies China is providing technical assistance and solutions through transfer of technology to telecommunication sector in Pakistan, symbolizing Sino-Pak time-tested and deep-rooted friendship, benefiting people of both the countries.

According to Advisor and Director Huawei telecom Pakistan, Nasim Usmani, Huawei Technologies China is operating in Pakistan since 2000 by providing solutions to PTCL, Special Communication Organization (SCO), Ufone and the cellular companies and is directly involved in the transfer of technologies in the telecom sector. The forthcoming visit of Chinese Prime Minister Wen Jiabao would help further strengthen the existing bilateral relations in various fields of economy and social sector.

Huawei Telecom China has also established Center for telecommunication in the University of Engineering and Technology (UET) Lahore at a cost of US$11.65 million which has so far produced 3500 excellent engineers in the fields of electric, telecom and civil sectors.

According to Nasim Usmani, 90% of them are working abroad and contributing to the national economy. He disclosed that Huawei telecom is also planning to establish a similar center at COMSATs (Islamabad) at a cost of US$5.82 million. Huawei China is also planning to introduce the latest 3G technology in the telecommunication sector in Pakistan which would be another symbol of technology transfer for the benefit of the country.

He further added that Huawei Telecom has established its offices across Pakistan providing employment opportunities to 25,000 workforces directly or indirectly.He added that there are 1500 direct employees working with the Hauwei Telecom Pakistan.

www.WirelessFederation.com/news: The highest standards of transparency” has been applied by Etisalat in the acquisition of its stake in Pakistan Telecommunications (PTCL) and the operator has also maintained that it is entitled to withhold payments under the terms of the transaction over an unresolved property issue.

A share purchase agreement has been signed by Etisalat with Pakistan’s government to acquire a 26 percent stake in PTCL for USD 2.6 billion. However, some payments to the Pakistani government were withheld by Etisalat because of a disagreement over the ownership of several properties in the country that were part of the deal.

Etisalat made it clear that it will immediately release the installments the moment Pakistan’s Privatization Commission fulfills this obligation.
As per the latest media reports, an inquiry have been proposed by Pakistan’s government into

Etisalat conduct in Pakistan regarding PTCL. According to Pakistan’s Minister for Privatization Waqar Ahmed Khan, the deal was made without involving the country’s Privatization Commission and that the properties that were to be transferred to Etisalat under the deal included lands that are not owned by the federal or provincial government.

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www.WirelessFederation.com/news: Payment of USD800 million by UAE-based Emirates Telecommunications Corporation (Etisalat) to the Pakistani government is again expected to be withheld by the Middle Eastern company for the fifth month in a row.

The payment was supposed to be made by the end of March as part of Etisalat 2006 acquisition of a 26% stake in Pakistan Telecommunication Company Limited (PTCL). The difference between the Pakistani government and Etisalat over the transfer of real estate units remains unresolved.

According to Mohammad Omran, Etisalat chairman, until now, the government has not released a list of properties to be converted to PTCL ownership and the payment will be made when the list is released. On the other hand, according to Shahab Khawaja, federal secretary at Ministry of privatization (MOP), they have already approached provincial governments to put value to the properties in their respective provinces and as soon as they get it, same will be conveyed to Etisalat and PTCL.

Etisalat has made it clear that the payments will be withheld until properties that were originally part of the company’s 2006 acquisition of a 26% stake in PTCL are registered in the Pakistani operator’s name. MOP has announced March 31, 2010 as Etisalat next payment date.

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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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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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