China Mobile’s chairman Wang Jianzhou revealed an expenditure plan of US$ 400 million this year by the Cellco - the leading cellular carrier by subscribers for expansion of its network in Pakistan. China Mobile made its entry into the Pakistan mobile market back in 2007 with the acquisition of an 89% stake in Paktel. Worth US$ 284 million, the company marked its first acquisition beyond China and Hong Kong. According to Wang, the company had made an investment of US$ 460 million in Paktel to date and China Mobile hoped to gather experience that would prove handy in furthering overseas expansion in the long run, as quoted by the news from TeleGeagraphy.

Mr. Zhang Chunxiang, China’s ambassador to Pakistan described the deal as another landmark in the history of Chinese corporate investment in Pakistan. The news published on Chineseembassy expected the investment by China Mobile in the local telecom infrastructure on the heels of this transaction to boost the Pakistani telecom industry considerably, generating employment opportunities for the Pakistani population.

China Mobile has witnessed the gigantic leaps made by the market and its potential in the years to come. With a population of 160 million, Pakistan comprises a sizeable youth proportion, apart from the telecommunication market being among the world’s fastest growing markets.

Mobile operators with their rapid growth have been favored by the country’s market despite the likelihood of an adverse impact on profits in the new future due to expansion into poorer rural markets. Competition is intense in the mobile market in Pakistan. Mobile phone users totaled 46 million last year - a mere 30% of the total population in the country. The implication is therefore, that growth potential still exists.

The low prices for service and mobile phone sets have prompted an increasing number of people to use mobile phones in Pakistan. In addition, the large population size makes Pakistan a highly sought-after market for mobile operators.

A research analyst at RNCOS sums it up as, Pakistan being among the countries whose vast potential for telecom growth remains untapped in an attractive investment scenario. Pakistan’s market is yet to become saturated and thanks to the plunging cost of handsets, plenty of new subscribers are up for grabs, more so in the rural areas.