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Thread: China Mobile is likely to enter Pakistan's cellular industry

  1. #1
    China Mobile is likely to enter Pakistan's cellular industry as the Asian telecom giant is close to acquiring Luxembourg-based Millicom International - the parent company of Paktel and one of six cellular operators in Pakistan. Telecom sources said Millicom International, which operates both AMPS and GSM cellular services through Paktel in Pakistan, was wrapping up its operations amid rising competition and declining profits.

    "There have been talks between the two (China Mobile and Millicom) groups and now it seems the deal between them is a matter of days," said a source close to Millicom's Pakistan operations. Millicom entered into Pakistan in early 90s, introducing cellular services in the country. Earlier, the company owned two cellular companies in Pakistan in partnership with local telecom operators but later it offloaded shares in one of the companies to local partner.

    He said currently Millicom owned Paktel, which offered both GSM (global system for mobile communications) and AMPS (advanced mobile phone system) cellular services across the country and the transfer of Pakistan's operations to China Mobile would be part of the deal. Millicom reported around 16 per cent rise in subscribers in the first quarter of 2006, with profit of $33.4 million compared to a loss of $11.3 million a year earlier. The company, with over 10 million subscribers, registered a 20 per cent increase in revenue to $322 million in the first quarter compared with the same period last year.

    Millicom authorities in November 2005 announced they were discussing the sale of one of its Pakistani units. In January 2006, following a high number of unsolicited approaches Millicom International announced its board of directors had decided to conduct a review of strategic options for the company and appointed Morgan Stanley as financial advisers. Sources said any party had not disclosed the size of Millicom-China Mobile deal but it would be over $5 billion, the biggest-ever overseas acquisition by the Chinese company. With more than 250 million wireless customers as of last month, China Mobile is by far the world's biggest wireless carrier and controls about two-thirds of the mobile market in China.

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    Source: http://www.tmcnet.com/usubmit/2006/05/31/1664718.htm
    Dream, I do.

  2. #2
    This is bad for the homegrown paK MOB INDUSTRY

  3. #3
    It was financed by a european company Millicom and millicom still owns it.

    It's not bad as far as my perspective goes.
    Dream, I do.

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