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Telenor Pakistan: Consolidation must happen in order to move to 3G

Categories: General
By: , IntoMobile
Thursday, March 18th, 2010 at 4:22 AM

The Financial Times interviewed Jon Eddy Abdullah, CEO of Telenor Pakistan, in which he said that market consolidation will be required in Pakistan’s mobile market before the country is in a position to move to 3G technology.

He said there are too many operators in Pakistan and that’s a problem as none of the parties have sufficient income to invest in 3G network. There are 5 operators in the country, and Abdullah thinks that’s two too much. He said: “Most markets are [divided between] three players. Three seems a very good number. Five is too many.” However, he refused to comment on any speculations that would involve Telenor acquiring or merging with some other operator in the country.

The five Pakistani operators (from biggest to smallest) are Orascom with 30.8 million users, Telenor (22.5 million), Warid Telecom (18.8 million), Ufone (18.5 million) and China Mobile’s Zong (6.9 million). 98% of all users use prepaid services and on average don’t spend more than $10 a month. With that kind of ARPU, it’s clear why Telenor (and I guess other operators) don’t see a way to build a 3G network…

[Via: MobileBusinessBriefing]

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About The Author

Dusan Belic

Dusan has been using smartphones since their introduction and is now following the latest trends in the industry. The "convergence" is what he's most excited about, and writing about it is the next logical thing to do. He thinks that using a smartphone is what everyone who cares about their time should do. In addition to his interests in mobile phones, Dusan also loves to experiment with the latest web and mobile 2.0 services. The idea of accessing and managing your information from any device no matter where you are simply amazes him. Whether it's an online to-do list, note taking service or a video sharing social network, he's there to try it out. He admits though, he's still searching for the ultimate web-based organizational tool, which "sings" perfectly with the mobile PIM application. Dusan used to run SymbianWatch.com which later became part of IntoMobile. He lives in Serbia, South-East Europe, from where he edits the site on a daily basis.