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Published on September 18th, 2006 | by Babar Bhatti


Deals with Foreign Telecom Giants

These days its hard to read the news without finding a new mega deal between a Pakistan telecom provider and foreign company be it a handset maker, equipment maker or another service provider. The reasons for such deals and contracts are manifold.. comapnies do it: to differentiate themselves, to introduce new technology which can attract customers and revenue, to rapidly execute on objectives and to get the expertise which is not available within Pakistan. Expect this trend to continue as the market gets competitive and the price wars rage on.

A few examples of such telecom deals and partnerships include:

  • Warid and Motorola on Wimax
  • PTCL and Huawei & ZTE for V-Wireless
  • Worlcall and Samsung / ZTE

One of the recent news is that of cooperation between Warid and Ericsson, a 274 Million dollar deal. The news article mentions:

Under the agreement, Ericsson will provide capacity for an additional 10 million subscribers through its mobile softswitch solution and the expansion of the radio access network in existing and new cities.

The expansion of the network and the implementation of Ericsson’s leading Mobile Softswitch solution will enable Warid to cater for Pakistan’s increased capacity requirements, cover its growing customer requirements effectively and smoothly evolve to all-IP.

One may ask if the delicate Pakistan economy is likely to sustain the demand for capacity. In the US many telecom comapnies rushed to lay fiber in the 1990s and after the bubble burst they were left with redundant infrastructure. Surprisingly the US consumers have not rushed towards broadband as people in other countries. Hopefully the case in Pakistan will be different. It is my opinion that Pakistan is waiting for better technologies to arrive and the public will embrace the improvements – given that the price is right and PTA provides a fair playground.

See more about this deal at Ericsson website.

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