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Mobilink signs $130m network expansion deal with Orascom

The agreement was signed in the presence of Mr Naguib Sawiris the visiting Chairman of Orascom Telecom Company, which owns 88 per cent shares in Mobilink, with the representatives of Siemens, Alcatal, Metrolla and Paktel companies.

Earlier, speaking at a news conference Mr Sawiris said that his company will spend $130 million dollar during 2003 to increase the number of subscribers from one million to two million by greatly improving its network and services in Pakistan.

However, he pointed out that Mobilink's another $130 million investment in 2004 will only be made provided its license was not cancelled by Pakistan Telecom Authority (PTA) on account of poor service.

He assured that wireless functions will be improved to have better Mobilink service. But he claimed that poor service was due to various other factors including problems at the international gateway and connectivity with fixed lines. He said there had been 90 per cent compliance and the remaining 10 per cent objections of the PTA will also be removed shortly.

The chairman of Orascom said that all the concerns of PTA will be removed by accelerating the installation of new equipment with the help of its suppliers. "As commitment with PTA, Mobilink is all geared up to provide a fully equipped network of enhanced capacity within four weeks".

He also announced that his company will be investing in other sectors including infrastructure, information technology, tourism, building material and fertilisers. "Initially we plan to purchase or set up a new fertiliser plant in Pakistan", he said.