Two cellular firms get license | Pakistan Press Foundation (PPF)

Pakistan Press Foundation

Two cellular firms get license

ISLAMABAD – President Pervez Musharraf has assured foreign investors of continuity of government’s economic policies.

The president was witnessing signing ceremony of issuance of cellular phone licenses to two companies namely M/s Telenor of Norway and M/s Warid Telecom of UAE on May 26.

Both the companies are likely to start their service by providing connections in the first quarter of next year. The ceremony took place at the Army House in Rawalpindi. Federal Minister for Information Technology Awais Ahmed Leghari and Minister for Privatization and Investment Abdul Hafeez Shaikh were also present.

Chairman of Pakistan Telecommunication Authority (PTA), Major General (retd) Shahzada Alam Malik, President and Chief Executive of Norway-based Telenor Jon Fredrik Baksaas and Chairman of UAE-based Warid Telecom, Sheikh Nahayan Mabarak Al-Nahayan signed the documents of licenses valid for the next fifteen years.

Musharraf while talking to officials of the two companies expressed the hope that their companies would bring more investment in Pakistan in the coming years. The president also hoped that the two companies would provide best and affordable service to their subscribers in Pakistan.

Later, talking to newsmen at PTA headquarters, Chairman PTA Maj-Gen (retd) Shahzada Alam Malik said both the companies have paid $145.5 million each which is 50 per cent of licenses while the remaining amount would be paid within the next ten years. He said the PTA was committed to provide level-playing field to all the cellular and telecom companies in the country.

The president of Telenor said the company has 35 million subscribers of its service in eleven countries of Asia and Europe. Fredrik said the company would bring in an investment of one billion dollars in the next five to seven years as mobile sector has a potential and capacity for expansion. “We will spend one billion dollars during the technical roll out process in the next five to seven years,” he declared.

He said so far they have not finalized plans but will start service from major cities of the country, most likely in mid of April, next year. He expressed satisfaction over procedure of award of licenses to the two companies. “The process has been fair and transparent from very start till date,” he said.

Representatives of Warid Telecom in Pakistan, Shahid Pervaiz and Hamid Farooq said they are expected to provide around one million mobile connections in Pakistan in the coming year by investing another 500 to 700 million dollars.

The officials of the two companies said to start with, they would provide voice and SMS services in form of pre-paid and post-paid cards and later would provide value-added services. The open bidding for award of licenses was held in Islamabad on April 14 with Space Telecom and Telenor emerging as highest bidders with 291 million dollars each.

However, M/s Warid Telecom was asked to match bid of 291 million dollars after Space Telecom failed to meet deadline for deposit of first instalment of 25 per cent of the license fee.
Source: The News
Date:5/27/2004