Pakistan has auctioned off two mobile phone licenses for $291m (£163m) each, in a move to expand the mobile sector.
Space Telecom, a local company, and Norway’s Telenor won the licenses in an auction in Islamabad.
The two firms outbid seven others, paying almost twice as much for the licenses than analysts had expected.
Pakistan hopes to build its mobile user base from 3 million - 2% of its 150 million population - to 15 million in the next four years.
It also wants to attract $1.5bn in fresh investment to the sector.
Although the number of mobile phones is small in relation to the population, demand in the country has outstripped supply due to the lack of capacity on cell-phone networks.
Space Telecom is backed by investors in the UK, Syria and the Netherlands.
Telenor has operations in 10 countries, including Bangladesh.
"Acquiring the license in Pakistan is a continuation of Telenor’s activities in Asia,‘’ said Telenor’s chief executive, Jon Fredrik Baksaas.
what you all think? I think its a healthy move for the consumers, only 2% population got access to current overstrecthed infrastructure of current providers.
you never get connected on first try during peak hours. every connection drop is revenue loss for the companies and agony for the user.
hope this will drive down the prices and reach the masses in remote areas as well.
Hmmm ... this money could buy us about 300 Al-Khalid main battle tanks, giving our army an impressively strong punch, but with peace inshallah on the way maybe we will have the opportunity to spend this windfall on a more neglected sector, such as education.
I think its a great news. This shows the rising confidence in our economy (by the Grace of Allah). I hope there is lasting peace and the extra money is used to pay off debts and thus give more space for government spending on the social sector.
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*Originally posted by Gupta: *
I think Pakistan should use some of that money to hire good bowling coach.
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Haha... NO!
Hi Mad Scientist! I heard about this sale, great news. Personally i think we should invest in public infsuctruture and services but yes militarty development and upgrades should also be on the agenda.
Hi Mad Scientist! I heard about this sale, great news. Personally i think we should invest in public infsuctruture and services but yes militarty development and upgrades should also be on the agenda.
Pakistan Zindabad!
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Actually, I'm agreeing more with Islamabad's sentiments. The money would best be used towards paying off our horrific debts. Musharraf's government has been the first givernment of Pakistan for decades that, rather than spend the fruit of its economic policies on measures that immediately help the common man, like infrastructure, economy and education, has instead chosen to spend the money on the long-term interest of the country - eliminating debt.
This unfortunately does open the government to allegations that despite the new-found properitty on paper of the country, the average man's life is not changing, and is in fact, arguably, getting more expensive.
The fact of the matter is that the money is going where it helps Pakistan as a nation, the most - debt payment. It is invisible now, but future governments of Pakistan will inshallah no longer have to put up with the current situation of having to pay an ENORMOUS and growing amount of national tax revenue to external lenders.