UAE, Pakistani groups may acquire ISPs April 19, 2007Posted by Mustafa in Blogroll, Broadband, Cable, DSL, Internet, ISP, Paksitan, Speed Test, Uncategorized.
Thursday, April 19, 2007, Rabi-us-sani 1, 1428 A.H.
|UAE, Pakistani groups may acquire ISPs http://thenews.jang.com.pk/daily_detail.asp?id=51859|
|By Imran AyubKARACHI: Business groups of Pakistan and the United Arab Emirates have entered into a deal with a local telecom consultant to explore investment opportunities in the country with $275 million in purse.
The groups of two different destinations have finally come up with plans of investment in Pakistani telecom which industry sources believe may trigger competition of a new kind and witness stakes’ sell-off by local companies.
“There are strong chances of these two groups acquiring local and small ISPs (Internet Service Providers),” said a source privy to two different deals but wanted to keep the concerned parties unnamed.
“The two groups have committed $55 million each over a period of five years as per business plans agreed by the concerned parties.” He said the two business groups hired the services of the local consultant, who would pinpoint potential areas in the telecom sector of Pakistan with history of higher returns and services of higher demand.
“Potential areas in Pakistan are Internet broadband, data communication services and managed IT and telecom services,” said the source. “But the groups would solely rely on the feedbacks and studies carried out by their consultant. It may take a month or more before a clear picture could emerge.”
Telecom has emerged as one of the fastest growing areas in the country over the last more than three years as it attracted more than $3.5 billion since late 2003 mainly by the cellular companies.
“The telecom shared more than 2 per cent in the overall GDP growth during 2005-06,” said the source citing official figures. Analysts say 2005-06 witnessed a little decline in telecom development compared to previous fiscal but it still offers a lot as the majority of the rural areas in the country lack basic telecom facilities, which attract the attention of both local and foreign operators.
“While being the world’s most rapidly growing market for mobile telephony, Pakistan still has among the world’s lowest penetration rates for the Internet and broadband,” said Ansar ul Haq, an expert in Internet and data communication industry.
“Overall Internet and broadband penetration is very low due to limited fixed-line infrastructures, high domestic and international bandwidth tariffs, inadequate focus of the authorities on Internet and broadband, numerous PTCL (Pakistan Telecommunication Company) issues, but demand is high, and the proliferation of broadband using various mediums including new technologies is expected to deliver a major boost.”
He said local and foreign investment was flowing in as this sector offered significant growth opportunities to service providers, equipment vendors and investors. “But 2006-07 could prove different in terms of telecom development and its share in GDP growth, as the companies in the deregulated environment would focus more on better infrastructure to improve service quality,” Haq added.
The telecom sector topped with the energy sector in attracting foreign and local investment during last financial year, which led to a rise by over 100 per cent in foreign direct investment. The boom in telecom sector managed to attract more than $1.10 billion as total foreign direct investment from July 2005 to June 2006, out of a total of nearly $3 billion, the Board of Investment (BoI) figures show.
Pakistan’s First Public Speed Tests October 23, 2006Posted by Mustafa in Blogroll, Broadband, Cable, DSL, Internet, ISP, Paksitan, Speed Test, Uncategorized.
Pakistan’s First Public Broadband / Internet Speed Tests are now available at http://www.broadbandpakistan.com
Direct Link to Speed Test : http://speed.broadbandpakistan.com