PAKISTAN: Bids in for telephone card venture

01 May 1998
NEWS

Pakistan Telecommunication Company (PTC) is evaluating bids for a pre- paid telephone card project. Bids were submitted on 15 April by MCI and Finatra, both of the US, Canada's Teleglobe, Norway's Telenor and the local Jang Group, TIP, Sipka Manufacturing, Telecard and World Call.

PTC will select a company to set up an estimated $200 million joint venture which will manufacture and market the cards that will initially be used at PTC's public telephone facilities. The cards may be re-programmed at a later stage for use at public call facilities provided by private operators.

The total market for prepaid cards in Pakistan is estimated at 3.2 million with only 40,000-50,000 international telephone lines available in the country. The project may also be undertaken in phases in partnership with multiple operators in order to create competition and enhance its profitability.

PTC was also due to receive bids from international firms to set up a joint venture to install a wireless local loop (WLL) system to provide 160,000 connections, of which 30 per cent will be in rural areas. The project is estimated to cost $192 million. The contract will be awarded on a build-own-operate (BOO) basis (MEED 27:3:98).

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