Find The Candy

The long tipped off Mobilink-DVCOM deal is finally making it to the press. The News is reporting that deal with transaction value estimated at $12 million.

DVCOM obtained an Long Distance International (LDI) and WLL license in 2004. Under the LDI license, the company was operating a popular brand of calling card services called Big Time. The brand was the first one to start the price war on Pakistan-US calling destination @ Rs 5 per minute. The market rates (on fixed, WLL and cellular networks) have now dropped down under Rs 1 per minute, thanks to the fierce competition, popularity of the destination and tons of cheap terminating operators in the US.

DVCOM never really put the WLL license to any physical use despite acquiring 1900 Mhz licenses in 9 out of 14 telecom regions of Pakistan.  And so was the case with the 3.5 GHz allocation where the company acquired licenses in 10 out of 14 telecom regions.

So what could be the candy in DVCOM for Mobilink given the fact that Mobilink now has a full-blown PCO business wing? Real Estate? Human Resource? Customers?  None of these exist in the case of DVCOM. The only appeal seems to be the 3.5 GHz allocation that DVCOM has under its belt.

And perhaps this could explain the Wimax homework participations of the 23 million heavy cellular company in Dubai and (up coming) Singapore.

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2 Responses to “Find The Candy”

  1. Eyes and Ears.... Says:

    If I were you… I’d be looking at another D … for M. 🙂

  2. KS Says:

    Good achievement from Zahoor Shb.

    KS


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