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Orascom wants to invest in banking sector
14th May, 2008
Egypt-based Orascom Group, the owning company of mobile operator Banglalink, yesterday expressed its interest to invest in Bangladesh's banking sector.
During his daylong visit to Dhaka, Naguib Sawiris, the chairman of Orascom Telecom Holding (OTH), a sister concern of Orascom Group, also showed interest to invest in fertilizer, cement and tourism sectors.
"Mobile aside, we have a big desire to invest in other sectors. But at this moment, our interest is mainly in banking sector," Sawiris told a press meet in Dhaka yesterday.
"We are very much eager to have banking licence in Bangladesh or to acquire any existing bank," Sawiris, who also met Chief Adviser Fakhruddin Ahmed and discussed investment proposals, said, adding, "We would like to introduce mobile banking, money transfer and procurement with the mobile."
Sawiris, Forbes ranked 60th richest man of the world, anticipated that his local subsidiary Banglalink's customer base will reach 10 million by the end of July from its existing 8.3million customer as of May 2008.
Banglalink, in recent years has become the number two mobile operator of the country in terms of subscriber acquisition, exceeding AKTEL.
Asked when Banglalink will hit break-even point, Sawiris said, "We are trying."
Sawiris identified excess taxation and lack of frequencies as two hurdles to the mobile sector in Bangladesh. By resolving these issues government can earn much more than what it earns now from mobile sector, he added.
Commenting on investment environment, he believes that present time is better to invest here compared to the previous regime. He said," I must say, we had no access to the previous government---our access was not granted in the past."
But in the changed scenario, Sawiris said the country's foreign direct investment has flourished, because there is no interest group. "So, this time, we will put our investment plans to the current government," he said.
Explaining his desire to become an owner of a Bangladeshi bank, Sawiris said there are so many Bangladeshis who now live abroad and desire to send money to their families without any hassle. "We believe that Orascom Group has the best vehicle (mobile) to provide that service," he said.
The company sources said Orascom Group has already compiled a list of local banks, which they would like to buy, if they fail to get a banking licence.
For investing in other areas, like fertilizer and cement, Sawiris said it depends on the supply of the gas.
Asked about the possibility of acquisition and merger in Bangladesh's cellphone market, he said, "Frankly speaking you have six operators, but we see only three."
He however said most competitors do not want to sell unless they have built some value. "And that's why we don't see someone wants to sell its stake right now. But I believe six is a crowd," he said.
About the upcoming technology, Sawiris said Banglalink will welcome 3G ( third generation technology). "We will stick to 3G. Because we believe, it is a continuation of GSM. It's much more easier for us to upgrade our technology by adopting 3G rather than WiMax".
According to Sawiris, Banglalink will invest $350million this year to enhance its network. The company already invested $700million since it started its operation in Bangladesh in 2005.
Sawiris denied Banglalink's involvement in illegal call termination through VoIP (voice over internet protocol) technology. He said, "Banglalink was not involved in VoIP."
However, he said, "If we find anybody in Banglalink is doing anything like that, he will not be here."
OTH is a sister concern of the Orascom Group, one of Egypt's largest business groups, maintaining significant holdings in the areas of telecommunications, information technology, tourism and construction in the global market.
OTH was established in 1998 and has grown to become a major player in the global telecommunications market. Orascom Telecom has an average penetration of approximately 40 percent in six emerging markets with a population of 430 million, exceeding 74 million subscribers as of May with a market capitalization of $15 billion.
Release link:
http://www.thedailystar.net/story.php?nid=36421
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