Pakistan is drawing the attention of global players for its lucrative telecommunication market that has been growing rapidly with tremendous scope for the future. Qtel is poised to enter Pakistan in its first overseas operation.

On April 25, 2007 Qatar Telecommunications Co. (Qtel) disclosed its consent for buying its first telecom operator in Pakistan, in an expansion bid beyond its home base where its monopoly is on the wane. Khaleej Times published news of the agreement by State-controlled Qtel with Saudi Arabia’s A. A. Turki Corp. for Trading and Contracting (Atco) for purchase of 75 percent of Pakistan’s Burraq Telecom for $12.3 million.

With Qatar’s plans to sell a second mobile phone license this year, Qtel begins expansion outside the Gulf state, marking an end to the last Arab monopoly. Qatar’s plans also include sales of second fixed-line license. With a population of 840,000 and a 100 percent plus mobile penetration, Qatar called on interested parties for the country’s second-mobile license this week.

At the moment several national and international telecom companies are concentrating on Pakistan for investments. The well-planned telecom policy has helped to attract an overwhelming amount of foreign investment to the country’s telecom sector

Telecom ranks among Pakistan’s fastest developing sectors. The increase in combined tele-density in the country rose from 4.5% to nearly 40% of the total population. The number of subscribers for mobile and fixed telephony has also gone up. From 8 million in 2003, it shot up to a staggering 50 million plus by 2006. In another 2 to 3 years, the number is expected to touch the 80 million mark.

Affordable mobile phone handsets have also contributed significantly to the rise in popularity of cell phones in the country. The surge and immense potential of the market haven’t gone unnoticed by Qtel. Young people account for a massive proportion of Pakistan’s 160 million population and its telecommunication market ranks among the world’s fastest growing markets.

The opinion of a RNCOS research analyst is that Burraq Telecom is a newly set up company involved in initiating long distance and international transmission network in Pakistan. The price for access is also highly affordable to Pakistan’s market, which is not only on rapid growth but also has tremendous potential. Therefore, Qtel is likely to make a quick return on investment due to Pakistan ranking fourth among Asia’s most populous countries.