China Mobile Is In Pakistan For The Long Haul
Despite many financial and operational challenges, China Mobile sees opportunities in Pakistan and other emerging markets. Read below for statements from China Mobile Chief Executive Wang Jianzhou from a meeting of the World Economic Forum. China Mobile is displaying a traditional Asian business trait: Patience and willingness to wait.
More from Reuters.
China Mobile bought Pakistan’s Paktel Ltd for $400 million last year and has spent an additional $1.2 billion to expand its network, but has not yet begun to see returns on that investment, Wang said.
“We have a lot of risks, we have a lot of troubles,” Wang said, referring to his company’s investment in Paktel (Zong).
Wang said daily power shortages in major cities and high taxes kept the cost structure high in Pakistan, while revenue has not yet begun to reflect the investment.
“The ARPU for us is $12/month, but in our Pakistani company it is only $3/month,” said Wang, explaining the difference in average revenue per user, a key industry benchmark.
But in spite of the hurdles of emerging markets, Wang said China Mobile was not a financial investor and did not need to see a positive return in the short term.
“We are not a financial company, we are not private equity, we are a telecom operating company,” he said.
