Two Win GSM Licenses in Pakistan

Norway's Telenor and the consortium group, Space Telecom have won two GSM licenses in Pakistan. Space Telecom is a consortium of investors that includes the local Attock Group and Syria's GSM network operator, Syriatel. Space Telecom said it has other investors from the U.K. and Holland, whom it didn't name.

The company's winning bids of US$291 million, secures a 15 year licence, which will be renewable on application. Only 50% of the licence fee is payable in the first year, with the balance over ten years. In addition the licensee will 2.5% of the annual gross revenue in fees. Existing operators will also have to pay the same licence fee on renewal of their licences.

Pakistan is the 6th most populous country in the world with a population of 150 million. GDP per capita in 2003 was US$ 471. Real GDP growth in 2002 was approximately four per cent and is expected to exceed five per cent per year in the period 2003-2005. There are currently four mobile operators in Pakistan Mobile penetration at the end of 2003 was 2.3% with a subscriber base of 3.4 million. Fixed line penetration stood at approximately 2.4% at the end of 2003.

Large geographic areas in Pakistan are without telephone coverage. Based on the positive economic development in Pakistan and the low mobile penetration in the country, high growth within the mobile segment is expected in coming years.

"Acquiring the license in Pakistan is a continuation of Telenor's activities in Asia. Historically Telenor has sucessfully focused on start up of greenfield mobile operations. We look forward to becoming a mobile operator in Pakistan and taking part in the expected growth within the mobile segment", said Jon Fredrik Baksaas, President and of CEO Telenor."

Posted to the site on 15th April 2004