LAHORE: China Mobile Pakistan (CMPak) has again approached the Pakistani government to ask it to grant the company an LDI licence in both Pakistan and Azad Kashmir and Gilgit-Baltistan.
Letters written by the CEO Advisor to CMPak sent to the previous Prime Minister of Pakistan, the Pakistan Telecommunication Authority (PTA), the Ministry of Information and Technology, as well as the Ministry of Finance mentioned that the watch-hold period of the government of Pakistan for grant of LDIs (Long Distance and International) licences to new operators in the country was completed on March 23. So, now the CMPak is eligible to get the already approved LDI licence by the Ministry of Information.
Letters written by the CEO Advisor to CMPak sent to the previous Prime Minister of Pakistan, the Pakistan Telecommunication Authority (PTA), the Ministry of Information and Technology, as well as the Ministry of Finance mentioned that the watch-hold period of the government of Pakistan for grant of LDIs (Long Distance and International) licences to new operators in the country was completed on March 23. So, now the CMPak is eligible to get the already approved LDI licence by the Ministry of Information.
The watch-hold on new licensing was imposed on account of the memorandum signed by the government with Etisalat International as part of the share-purchase agreement of Pakistan Telecommunication Company Limited (PTCL). When Etisalat purchased the major share of PTCL and took over the management of Pakistan's single largest landline telephony services, it made an agreement that no new LDI licence would be issued by the government until March 23, 2013, in order to provide space to the company to get returns into its investment in Pakistan.
CMPak is the first overseas subsidiary of China Mobile Communications Corporation owned by the Chinese government has committed foreign direct investment worth more than $1.5 billion in CMPak.
So far, CMPak is the only cellular mobile operator in Pakistan which does not have an LDI licence in both Pakistan and Azad Kashmir and Gilgit-Baltistan, which puts the company in a position of competitive disadvantage against other cellular mobile operators. CEO Advisor to CMPak, Sikindar Naqi said that the request for an LDI licence in Pakistan and Azad Kashmir and Gilgit-Baltistan was approved by the federal cabinet during its meeting held on September 24, 2008. However, the LDI licence could not be issued due to the seven-year watch-hold imposed on new licensing, he added.
"Although the watch-hold was never shared with CMCC by PTA at the time of strategic investment, CMPak still honoured the commitments of Government of Pakistan and waited for the completion of watch-hold period. Now the watch-hold period has ended," he added.
He said the CMPak had already paid a heavy price to honour the government of Pakistan's commitments with Etisalat. It is high time that the government of Pakistan honours its commitments and awards long distance and international licence to CMPak. This act will enhance investor confidence in the policies and commitments of the government of Pakistan and will ensure high proceeds for the government of Pakistan in the upcoming 3G spectrum auction.
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