Telenor to invest $5 billion in five years
RECORDER REPORT

LAHORE (July 14 2004): A Norwegian mobile phone company Telenor has decided to invest $5 billion in Pakistan during next five years. "We will start our mobile phone operation in Pakistan in April 2005", said Stain. T. Atherem, senior vice-president Telenor during a meeting with the Punjab Industries Minister Muhammad Ajmal Cheema here on Tuesday.

During the meeting, it was revealed Telenor, will install 170 telephone towers only in Lahore and in this regard survey for search of suitable places has already been started.

Ajmal Cheema said on the occasion that the government would provide facilities and incentives to foreign investors. He said that investment friendly policies of present government are attracting foreign investors.

Copyright Business Recorder, 2004

woow wats the time period

woow wats the time period

Wonderfull News

Thats more like it

5 billion in 5 years...

so , atleast Pak will have 1 billion foreign investment for sure for next 5 year.s

That as they say is merely the tip of the iceberg.

This USD 5 Billion investment over the next five years will cause an explosive growth in Pakistan’s teledensity. On second thoughts even the term “explosive growth” does not come to fully describe the beneficial consequences of this investment.

Consider that within the South Asian milieu, per line costs for GSM are around USD 75 per line, a figure which Pakistan will no doubt seek to lower.

This investment of USD 5 Billion will thus translate over the next five years, at the very least, into 66.6 million cell phones. Adding the around 3.5 million cell phones currently in place (Is this number correct ?), Pakistan will top 70 million cell phones five years down the road.

That is the potential magnitude of this investment.

Are you guys sure this isnt a mistake/typo?

$5 Billion is A LOT of money, $5 million or even Rs 5 Billion sound more believeable. If this was true, this news would have gotten much more coverage in the media, i just find it hard to believe.

Qaz,

This is stupendous news and entirely within the remit of Telenor.

About Telenor - Geographical scope

Over the last decade, Telenor has developed its position as a mobile operator with substantial operations in 12 countries. At the end of 2003, the companies wherein Telenor has ownership interests had a total of 34.8 million mobile subscriptions. The mobile commitments outside Norway have become an increasingly important part of Telenor's activity, and contributed to 24 per cent of the Group's external revenues in 2003.

The business areas each have defined geographical areas of priority outside Norway:

- Telenor Mobile has selected countries in Europe and South East Asia as its priority markets.

- Telenor Networks has activities in Sweden, Russia and Eastern Europe.

- Telenor Broadcast has defined the Nordic Region as its home market.

You will note that Telenor’s market capitalization is about USD 12.5 Billion and to commit 40% of its Market Capitalization to One country speaks volumes of Telenor’s confidence in Pakistan.

Getting Telenor to enter Pakistan is a Feather in Pakistani Finance Minister (Prime Minister in waiting) Shaukat Aziz’s cap. Getting a commitment of an investment amounting to US Dollars Five Billion is nothing short of a Miracle.

More Power to Pakistani Finance Minister (Prime Minister in waiting) Shaukat Aziz.

Peace

btw the figure is $1Billion in 5 years which is pretty damn good.

Taikon@ut,

I think you are mistaken.

The Article specifically mentions USD Five Billion .

Is there any other Article after the one from the Business Recorder i.e. after 14th July, correcting the figure from USD 5 Billion to USD 1 Billion?

Peace

$5 bn in 5 years is too much. $500 mn in 5 years is the closest I can think of.

well if its five billion dollars its huge we weill almost double out direct foreign investment

that sounds more realistic

Good one Ajgir.

PakiPower,

Naturellement! Mon Ami !! Naturellement !!!

BTW : I have read the FIVE BILLION U S DOLLARS Figure in various Pakistani Media outlets and still think that this is the actual Figure. Nowhere in the Pakistani Media have I read the total figure of Rs. Five Billion or USD 500,000 or USD One Billion.

Strange isn’t it that Indians posters are lauding the Huge Investment being made by Telenor in Pakistan and Pakistani posters are down playing the figure even though the Pakistani Media has mentioned the Figure of USD Five Billion?

Peace

Sure... you have full right and opportunity to be sarcastic. Our jahil brecorder.com has again proven their worth. If this $5 billion was anywhere near reality, it would have taken the headlines of all business newspapers and stock markets all over the world. The news of even any $5 invesment is not on telenor's press release... let alone 5Billion..

ps. Naturellement! Mon Ami !! Naturellement !!!

English plz!

Sounds like 0.500bn over 5 years to me...

PakiPower,

I have said it before, I am saying it now and I am sure I will have to say it again :

Sarcasm is not part of my repertoire as Sarcasm is the lowest form of wit.

You will realise that in a health debate I have often criticised “goings on” in Pakistan and now that I hear the “Good News” why should I not repeat it? It is all part of the healthy debate.

I hope the following Article from the Daily Times will put you mind at rest and you will be a “Doubting Thomas” no more :

Telenor to launch mobile service in April 2005

LAHORE: Norwegian mobile phone company Telenor will invest $5 billion in Pakistan the next five years and launch its mobile service by April 2005, said a press release on Tuesday.

Telenor officials said this at a meeting with Trade Minister Muhammad Ajmal Cheema in a meeting here at the Civil Secretariat. The officials told Mr Cheema that Telenor would initially install 170 towers in Lahore.

The minister assured the officials any problems they had in getting no objection certificates would be quickly removed.

I hope this will put your mind at rest and you shall accuse me of Sarcasm no more.

ps. Naturellement! Mon Ami !! Naturellement !!!

English plz!

C’est na pas – Mon Ami !

Peace

brov we read A LOT of things in pakistani media, many of them are repeated many times and reported by all papers but are all these news true?

pakistani media is not very reliable.

this doesnt mean the news is not true, just that it will take more than pakistani newspapers to convince me.

well for pakistan any foreign investment news is good news but i also find this $5bn figure a bit excessive...

one thing that i've seen with the mobile fone market in pakistan is the use of age old technology. mobilink etc. r still fleecing customers by having the whole old networks installed whereby calling from lahore to isb u get charged like ur making an international call! to any mobile fone users in uk (maybe in US and canada as well but i'm not sure about ur networks) that seems insane almost..

could be that this much heavy investment is needed by telenor to form a new more improved network which it can then market and give mobilink and paktel a few sleepless nites...personnally i hope it does just that for the sake of the customers and for the sake of competition.

dude in Canada..

if i use my cell to call from Toronto to Mississauga.. both cities are attached and its part of the GTA - Greater Toronto Area.. which means Mississauga is part of TdOT.......... its "Long Distance Calling" ......

ps. Naturellement! Mon Ami !! Naturellement !!!

English plz!

C’est na pas – Mon Ami !

Translation :-

Naturally !! My friend !! Naturally.

I suppose Ajgir was trying to say "Je ne c'est pas - Mon Ami " : I don't know my friend.


Coming back to the Telenor .. I think I have read somewhere else the figure of 500 millions US $ .. However, don't forget Telenor bought the license from GOP for 291 million US $ ... the same licence was issued to MOBILINK & U-Phone (PTCL) for "0" Rs. / US $ !

Siemens, Telenor to Set up Cellular Network in Pakistan

KARACHI, July 16 Asia Pulse - Telenor and Siemens have signed an agreement for the deployment of a cellular network in Pakistan, a press release said on Wednesday.
Top executives from both companies signed the accord for the supply, installation, commissioning, operation and maintenance of cellular infrastructure across Pakistan.

Telenor plans to invest US$1 billion over the next five years.

Telenor is a Norwegian operator, which had successfully won a licence to operate cellular network in Pakistan for a payment of US$291 million earlier this year. It also has extensive experience in cellular operations worldwide, while Siemens is a German manufacturer of telecom equipment and it is the large telecom solution provider in Pakistan.

Meanwhile, a delegation of Telenor accompanied by top officials of Siemens also visited Karachi and met Sindh Governor Dr Ishrat ul Ebad and other government officials. They assured the delegation of their full cooperation in helping the company with its plans of foreign investment in the province.

Yahoo

There is no way Telenor can invest 5 billion dollars in Pakistan. The figure is too high for such a small company. It must be arround 1 billion Kroners, which is about 150 million dollars. I will check it up.

Telenor acquires GSM licence in Pakistan



(Islamabad/Oslo, 14 April 2004) Telenor has won the auction in Islamabad for one of two new nationwide licences in Pakistan for mobile operation.

Telenor's winning bid of USD 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 per cent 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 USD 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 per cent with a subscriber base of 3.4 million. Fixed line penetration stood at approximately 2.4 per cent 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.


For further information:
Dag Vangsnes, EVP Communications, Telenor Mobile +47 91 789 427

Telenor is investing $1 b ... !

and the GDP per capita 2003-2004 was USD 650

i think the gdp is forecasted to be 650 by this year, it is not yet final. last year it was 471.

anyway, even 1 billion over the next 5 years is good. it means 200 million per year from telenor alone.

1 billion is great!!!!!!!!

Basically most of Pakistan will be covered with worldclass mobile service. Hopefully the prices of calls will also drop.

Im confused!
What is it 5 billion or 1 billion???

1 billion