Orange Telecom invests $50-70M in Telecard

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Orange Telecom has just recently invested about $50-70M in Telecard. Telecard has been a WLL + LDI company offering a range of call and internet cards, and have also operated the GO-CDMA brand.

image GO CDMA had the tough task of being the first-to-market with a new "innovation" for this market, WLL. Being the first in these cases is hard because you have to bear the entire cost of introducing the new concept to people – your competitors just wait to launch until people understand what this new innovation is and can launch at a fraction of the total communication cost.

At its launch GO-CDMA had done a pretty good job of introducing itself in the market, but low service quality and lack of funds to expand both regionally as well as in services-breadth has left uptake of this service relatively low.

It is unclear what TeleCard will use the investment for, but they might be wise to expand their network to become CDMA2000x-RevA compliant and give reasonable broadband / videophony to consumers.

Do you think its time for video telephony?

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30 Comments

  • Kalley Berry

    Good news. Hopefully they will give free phone sets.

  • Muhammad Omer

    Video telephony always have opportunity for capture Pakistan market. I agree with you, its difficult to introducing new concept and capture market capital. If marketing strategy take right direction according to regional location then it will not hard for capture market capital and make profit from it.

    Best of luck for both companies.

  • I am not very sure that Orange has any interest in directly investing in Telecard especially given the current investment scenario.

    This ‘news’ probably has its origin in another event in which an ex-Orange executive who has a vision of winning millions of Wimax users worldwide under a single brand name. This company is also planning for operations in Pakistan and needed frequencies in the 3.5Ghz which Telecard was happy to offer them.

    The company is actively searching for top executives in the local market.

    -T

  • Shahzad Alam

    Guys,

    Just to clarify, Orange Telecom is not involved in any shape with Telecard. Its http://www.augere.com, who are headed by ex-Orange CEO Mr. Sanjiv Ahuja.

    Augere has just paid for Telecard’s 3.5GHz spectrum with some % of revenue.

    Augere will have their own technical team just to oversee the deployment by a vendor, who is unfortunately doing vendor financing on BOT basis.

    I hope it clears the situation.

    -SA

  • BTW, Huawei insiders are claiming that the contract for this particular deal has been finalized with the Chinese giant. Most probably, this will be vendor financed.

    Moreover, the operator is expected to outsource the roll out to the vendor (Huawei).

    On a different but possibly related note, Huawei is searching for new project managers and advertising this in the leading newspapers.

  • Shahzad Alam

    It is totally vendor financed, a widely followed model and combination among new operator, new product and new technology.

    Huawei doesn’t have any commercial Mobile WiMAX network in the world except one small in STC, Saudi which is still in deployment phase.

    Shouldn’t be amazed with results like Wateen WiMAX.

    -SA

  • adnan cheema

    Its http://www.augere.eu

    Rgds.

    Adnan cheema

  • There is not a one company, there are three main participants Augere for 3.5GHz, Altimo for Insta & Huawei for technology & equipments providers. I am also seeing TCL will also remain in WWL.

  • No doubt Go cdma is a good company but due to lack of service(sinal) its moral is low. hahaha If the company obtain license of Roaming then
    AAAHHHHHHHHHHHHHH

  • Muhammad waqas

    Hi Tee,

    Your comments on ex-orange CEO investment in paksitan is interesting.
    Actually i was looking for some one who can give me info on Sofrecom.
    I have been contacted by some one from sofrecom as consultant for pakistan.

    I am currenty out of pakistan.

    I tried to find out about sofrecom business in pakistan but in vain.Could you please give me some info about their business extent.

    Send ur cmment on my email”waqasnaz@gmail.com” as well.

    Thanks

  • One thing is sure that Orange is not investing, it is Augere owned by Ahuja who is interested to develop broadband network in Pakistan.
    But working in Pakistan needs license and acquiring a Telecard like company is quite difficult as Burraq deals was already prolonged and never got final to acquire Telecard. I beleive there is a legal fight going for it. So this is the last hope for Augere if he can get through this deal successfully.

  • i am working in pakistan’s telecom industry since last 2.6 years and i am looking forward for this inovation in pakistan and hoping that they will create a revolution in pakistan’s telecom web.

  • My company is involved in this business of Telecom in Pakistan since 2003. I hope that they will do some good for the industry.

  • Lets see, a new operator, I hope they have something to do for the inverticals. Most of us are so far focusing on dumb pipes.

  • any intvestment will be a good sign in local troubled market

  • Telecard is not invetsing in GoCDMA since last two years and if any investment of the tune $ 50 million or more is coming to telecard it must be monitored very closely by investors themselves as the current owners are completely dry. The wimax product is excellent for our urban market provided the users will get the promised bandwidth and that could only be done if proper investment is made on expanding network and allied services.
    Best of wishes to Augere Management for there interest in our local market

    Good luck.

  • its a good brek through in telecommunication sector,we hope it will b a customer oriented co.its a life blood investment in a down faling economy.

  • could anyone tell me about Orange telecom involved in 3g or making its own setup in pakistan???

  • could any one tell me about any update regarding sale of telecard to any international telecom player. currently the financial result are showing good trend for TCL. that will attract many companies for the same

  • Telecard has been borrowing huge debts from financial institutions on the claims that it is overhauling its equipments so as to enter into multi-million dollar deal with foreign investors. I don’t think their is any reality in this all. It has been 2 and half years that we have been listening such gossips, but nothing has yet come to the records.

  • Woli,

    I don’t know what exactly you mean by “financial result are showing good trend for TCL”.

    The auditors issued a qualified audit report on account of:
    -capitalization of borrowing costs which do not qualify for capitalization
    – Revaluing intangible assets (WLL licenses) which do not have any ready market and are may not be sold without prior permission of the Pakistani authorities

    Further, the company’s loss per share increased from PKR 1.31 in FY07 to PKR 1.61 in FY08.

    Many other KPI’s i.e. Liquidity, Leverage, Cash Generation, Profitability etc have also deteriorated.

  • Aktar
    u may be right. i am not a financial expert look like u. I am a technical marketer working at Oslo. I met some of their representative at London from LDI dept. coz it was my area of interest. I had a detail discussion on their POP’s technical aspects over UE. The traffic he was talk about was very considerable from last couple of quarters. I remember that was $20m+ cash at that time.
    that is an unauthentic & undocumented info.

  • Mr. Alam you are right .but what about Cybernet Wimax.you have sold out there, now they are planning to dismantle the equipment. is not only wateen or do we include cybernet and interactive. kindly comment

  • Dear Jawad Gondal,

    Thanks for your vision statement. Cybernet WiMAX network is up and running for the market they had plan to target and i hope they still have plans to continue after evaluating their internal “strategy plans” keeping in view competition and Global financial crisis.

    The second part of the question is not properly worded and not clear to me…..but let me comment…..whatever i understand….Wateen WiMAX is going good, they have touched 50K subs. They have parallel plans to increase in building penetration. And as far as Interactive is concerned…..they are flying in their target area…

    Do you want me more to comment on Mobilink Infinity as well? May be next time…

    Glad to know that now you have started spending time on WiMAX when others are looking towards LTE…

    Regard
    Shahzad

  • kindly tell the official Website or Office of Orange telecom in pakistan

  • Hello,

    Friends, my first entry, please welcome me!

  • Actually tele card is not a reliable company because the couruption envolves, no retun to the share holders always in lose…..
    heavy administrative expences low revinue……
    all bull shit………

  • Hi,
    I am looking for official website for Careers

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  • Telecard is first company to introduce Wireless Local Loop service in Pakistan & provide instant connections for home users. PTCL’s customers have been very annoyed with the services provided by PTCL like no service, over billing, fixed line rent. I think, WLL companies provide more cost effective services in Pakistan if PTA has support & encourage WLL companies in Pakistan.

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