SingTel to invest $150m on network expansion

Tue Jun 07, 2005 12:02 pm            

Pacific Bangladesh Telecom Limited (PBTL), owning company of CityCell, that signed the biggest partnership deal in the sector with SingTel four days ago, hopes to be the number one mobile phone operator in the country in two to three years and provide the cheapest service.
SingTel (Singapore Telecommunications Ltd.), South East Asia's largest mobile phone company, bought for $118 million a 45 percent stake in PBTL under a deal signed in Singapore on June 2.

Moreover, SingTel has a call option to increase its equity interest in PBTL to 60 percent for an additional $65 million. The option can be exercised between April 1 and June 30, 2007.


The company will also invest $150 million in PBTL to expand its network for another 3.5 million subscribers.

PBTL is now the third largest cellular operator in the country with 3.5 lakh subscribers .


"PBTL will take 24 to 36 months to become the number one operator in the country," Vice- chairman of PBTL Faisal Morshed Khan told a press briefing in the capital yesterday.

SingTel will use Bangladesh as a bridge to connect South East Asia and South Asia. The company will have three members on PBTL board, Faisal said.

On tariff reduction, Faisal said PBTL service will definitely be the cheapest in the country and probably in the region. "But we need that capacity before we can go ahead and do that."

SingTel believes that there will be rapid telecommunications growth in Bangladesh in the years to come, as has been experienced in other regional markets which SingTel has invested in, Faisal quoted SingTel Chief Executive Officer (CEO) Lee Hsien Yang as saying.


"We are proud to welcome SingTel, the leading communications group in Asia, as our strategic investor," Faisal said.

Chris Maloy, CEO, and other officials of PBTL were present at the briefing.

Sun Jun 25, 2006 3:58 pm