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Dubai-based satellite co may invest $18bn in Pakistan

ISLAMABAD: Pakistan Telecommunication Company Limited hopes to sign a $18 million investment agreement with Dubai-based Al-Thuryia Satellite Company by mid-February for provision of gateway facility linking subscribers in 99 countries.

Official sources told Fortuna on Monday, the proposed investment agreement would enable the PTC to provide mobile phone services at drastically reduce rates.

Sources said the gateway facility projects is part of Al-Thuryia's plant to launch its own worldwide satellite service covering 99 countries by next September, adding Saudi Arabia-based Faisal Bank would finance the project in Pakistan.

"The company officials are scheduled to visit Pakistan in this month to negotiate the project with local authorities. However, the final date has not been confirmed," said sources.

They maintained that Al-Thuryia and Faisal Bank officials would hold discussions upon their arrival in Pakistan with the Pakistan Telecommunication Foundation to devise a strrategy on the basis of technical aspects of the project before the laying of gateway.

"A team of technical experts of the Foundation has been assigned by the PTCL high-ups to finalise terms and conditions with the Al-Thuryia."

"After provision of the gateway facility to the company, subscribers in 99 countries including Pakistan would be able to get mobile service on extremely low rates compared with rates offered by other companies. The mobile phones will work on a single code throughout the 99 countries including South Asia, Central Asia, Europe and Middle East," sources said.

Sources said PTCL and TF officials had already negotiated with the Al-Thuryia thepreliminaries of commissioning of services in Pakistan. "The two side might reach an agreement and sign a memorandum of understanding (MoU) afer the scheduled meetings in February," sources said.

According to the preliminary understanding between parties, the Pakistan Telecom would have exclusive rights for provision of services and gateway facility to the company.

According to the initial understanding all international and national connectivity would be through the Pak Telecom gateway and the national network and the Pak Telecom will be made an equity partner iin the gateway project subject to commercial feasibility and availability. Fortuna