For the telecoms, a deadly waiting game begins

[maithil]

Good going govt. Harassing MNCs with sizable investment in one of primary sectors is perfect way to invite FDI.

 

[Counterpunch]

Irrespective of what the profits of the two companies are Govt. must still abide by the original contract which states the first renewal shall be at the same price ($290 m). Such measures can have serious implications on any new investments. Without bias it is the Government of Pakistan that the Telco's had the agreements with and irrespective of whether that was an elected one or selected one, the validity of what was agreed still stays.

Our looters of the governments can arm twist the common masses into paying more for every commodity that sees increase in use, it will not be a sane approach to handle International operators with the same foolish tactic

 

[Abdussamad]

There was no elected government in place.

Army has ruled the country for the majority of the years since independence. You can't just kick out old contracts because army was in power. This is not how the world works.

Next you'll be saying they were corrupt, of a different political party than the one you like, old, young, thin, fat, male, female etc. Perhaps you'll say the weather was not favourable at the time or the stars were not aligned. You'll make up any number of excuses.

 

[valkyr_96]

Army has ruled the country for the majority of the years since independence. You can't just kick out old contracts because army was in power. This is not how the world works.

Next you'll be saying they were corrupt, of a different political party than the one you like, old, young, thin, fat, male, female etc. Perhaps you'll say the weather was not favourable at the time or the stars were not aligned. You'll make up any number of excuses.

The only person making excuses are you and time and time again. I have answered you maybe stick to that and give a proper reply. The government can choose not to renew the contract there is nothing to say otherwise within the contract hence these microfinance banks have gotten a stay order. Better to get an education than ramble on.

Good going govt. Harassing MNCs with sizable investment in one of primary sectors is perfect way to invite FDI.

It was PMLN who stalled this but then it was okay. Good going hypocrite!.

 

[Counterpunch]

The only person making excuses are you and time and time again. I have answered you maybe stick to that and give a proper reply. The government can choose not to renew the contract there is nothing to say otherwise within the contract hence these microfinance banks have gotten a stay order. Better to get an education than ramble on.

It was PMLN who stalled this but then it was okay. Good going hypocrite!.

Sorry to just jump in on your debate but I could not resist commenting on your annoyance of Telco's becoming Micorfinance banks. First off this is all licensed. They cannot chose to do whatever they feel like without prior approvals. They are thoroughly regulated by SBP.

Telcos as Micofinance banks - they are way ahead of us and way ahead of this. They are just beginning to offer alternate and better uses of our cellphones which up till few years back were only meant to give missbells and forward jokes. Our outdated economy is catching up and the term micofinance banks as you said is beginning to make sense to us - decade late but still.

It might be prerogative of Govt to nullify the contract but this is not what is going to make Pakistan attractive for investors. And I am sure this is not even the last arena where we jump the guns and suddenly remember we are sovereign nation who can do anything. We will only fail in attracting more lucrative investments than this cummulative effect of mere $ 500 m. So we need to think big and think for the future.

 

[valkyr_96]

Sorry to just jump in on your debate but I could not resist commenting on your annoyance of Telco's becoming Micorfinance banks. First off this is all licensed. They cannot chose to do whatever they feel like without prior approvals. They are thoroughly regulated by SBP.

Telcos as Micofinance banks - they are way ahead of us and way ahead of this. They are just beginning to offer alternate and better uses of our cellphones which up till few years back were only meant to give missbells and forward jokes. Our outdated economy is catching up and the term micofinance banks as you said is beginning to make sense to us - decade late but still.

It might be prerogative of Govt to nullify the contract but this is not what is going to make Pakistan attractive for investors. And I am sure this is not even the last arena where we jump the guns and suddenly remember we are sovereign nation who can do anything. We will only fail in attracting more lucrative investments than this cummulative effect of mere $ 500 m. So we need to think big and think for the future.

maybe observe the argument before jumping in......the poster is berating the fact that internet and telephony has flourished. That is true but so have the companies that are not telecos anymore but mfbs. The issue isn't about regulation it's about paying proportionate dues. The argument here is either the government honor a 15 year old clause and renews at the old rate or it it doesn't renew at all, against which these mfbs have gotten a stay order. There needs to be an amicable solution to this. Your next door neighbour does not allow direct FDI every foreign business has to partner up even foreign media has joined up only to penetrate their market. Here in Pakistan, foreign investors can own 100% of their businesses. Tell me where should the FDI go? This has got noting to do with FDI and or investment. If these costs are high they can be rationalised by floating shares that is what the stock market is for. This issue was held up by PMLN who did not want to continue the contract the current government is of the same view.

 

[Counterpunch]

maybe observe the argument before jumping in......the poster is berating the fact that internet and telephony has flourished. That is true but so have the companies that are not telecos anymore but mfbs. The issue isn't about regulation it's about paying proportionate dues. The argument here is either the government honor a 15 year old clause and renews at the old rate or it it doesn't renew at all, against which these mfbs have gotten a stay order. There needs to be an amicable solution to this. Your next door neighbour does not allow direct FDI every foreign business has to partner up even foreign media has joined up only to penetrate their market. Here in Pakistan, foreign investors can own 100% of their businesses. Tell me where should the FDI go? This has got noting to do with FDI and or investment. If these costs are high they can be rationalised by floating shares that is what the stock market is for. This issue was held up by PMLN who did not want to continue the contract the current government is of the same view.

The question then is of a policy shift required on how we treat the incoming investors and project ourselves as a market. There is no comparison what so ever between next door neighbor owing to the pathetic state our economy is in. Beggars can't be choosers and its a hard fact. Ideally, it must certainly be a partnered venture and not a 100% ownership basis but then who would want to invest? We have to make up for the shortcomings of our system by offering a 100% profit ownership. Our justice system is not trustworthy and here we are stalling the old agreement irrespective of whom they entered with. I remember a power producers agreement entered into in PP Govt. that required GoP to pay as per 100% production capacity even if the plant was running at half.

Overall, if the current license renewal had any strategic implication (like Reko diq) I would have all been in support of cancelling it for good. But the amount involved is nothing compared to the damage it will do to the already ailing reputation. We move on with this contract and sit and formulate a policy that suits Pakistan's future going forward.

 

[AZADPAKISTAN2009]

15 Years ago we had 1,000-100,000 mobile users


Now we have 150 Million Subscribers

So new Licence Fees will reflect the User Base