Beirut (APD) - Pakistan-based Warid Telecom, owned by Abu Dhabi-based holding, Abu Dhabi Group, was awarded an $89 million license to operate a GSM network in Bangladesh, the Dubai-based al-Bayan daily reported Thursday.
In October, the Bangladesh Telecommunications Regulatory Commission (BTRC) commission had invited proposals from Bangladeshi companies, joint ventures, or foreign companies, to set up, maintain and operate a GSM mobile phone network in the country.
Out of 17 providers who had acquired the bidding documents, only two companies last month entered bids for the license, which is the country's fifth GSM and sixth mobile license.
An evaluation committee headed by BTRC's vice chairman Reza-e-Rabbi recommended Warid as technically qualified provider. Umniah of Jordan was the other bidder competing for the license.
Warid was seen as the favorite for winning the license, because of its financial strength and commitment to undertake other investments in Bangladesh. The company will have to deposit $89 million as fees and charges to BTRC.
Umniah is a two-year-old GSM network operator in Jordan, in which Kuwait-based Global Investment House holds a 15% stake.
Warid's new license will be valid for an initial period of 15 years. It covers the whole of Bangladesh and is renewable.
Bangladesh's mobile users are projected to reach 15 million customers by 2007.
Bangladesh now has five cell phone operators (City Cell, GrameenPhone, AKtel, Banglalink in the private sector and Teletalk in the public sector) serving as many as 7.5 million subscribers.
Projections are for continued growth in mobile communications but members in the industry recently expressed concerns that further increases in operator numbers could be counterproductive.
The BTRC's rationale behind offering another license was to develop services rapidly and ensure competition in the industry.
Abu Dhabi Group (ABG), the owner of Warid, signed a memorandum of understanding (MoU) with the Board of Investment Bangladesh (BOIBD) in September to invest around $1 billion in the country's telecom, tourism and pharmaceuticals sectors.
ABG is a privately owned investment holding company based in the UAE with additional strong interests in Iraq, Pakistan, and now Bangladesh.
Warid Telecom, which was established in August 2004 with AED 100 million in capital, bought a GSM mobile license in Pakistan through auction for $291 million in 2003. [TS]
By Nadim Issa, APD Staff Writer in Beirut
© APD (Arab Press Digest) 2005
