Network Fails to Pay for License

Space Telecom, which recently won a GSM operators license in Pakistan has missed the deadline for making the initial 25% deposit on the license fee. The company blamed a dispute between the partners that make up the company. Norway's Telenor, which won the second of the licenses has confirmed that it has made its deposit payment.

"We have not made the payment, but the issue is in the court," Abid Ali Butt, Chief Executive of Space Telecom, told Reuters.

"I cannot give you any details right now but we will issue a press statement later."

The Pakistan Telecom Authority has not said what it actions or censure it may consider against the consortium.

Chairman PTA Major Gen. (Retd) Shahzada Alam Malik said that keeping in view the huge population of 150 million with per capital income of about US $ 600, there was tremendous scope for the growth of mobile phone industry. He said that penetration of cellular phone, which was about 2.3%, was quite low compared to other countries of the region. He said that under the given circumstances mobile penetration should have been more than 10 percent."

Posted to the site on 29th April 2004