Paktel was a telecom operator in Pakistan. It was bought by China Mobile in 2007 and renamed to CMPak.
China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile, a Chinese state-owned enterprise. China Mobile bought the company from Millicom via an acquisition of a license from Millicom to operate a GSM network in Pakistan.
CMPak has invested more than US$ 700 million in the telecom sector in Pakistan and an additional US$ 800 million will be invested till the end of year 2008.
History of Paktel
Paktel is a mobile telecommunication company in Pakistan. It was the first company granted a license to carry out cellular phone services in Pakistan, set up by Cable & Wireless. It carried out AMPS services until 2004, when the company launched GSM services as well. Paktel's main competitor is Instaphone. Paktel Mediation and Billing System was developed by a team in which (Syed Ahmed Ali, Nadeem Usmani, Wasay Farooqi & Ali Korani)were included. However after the launch and rapid success of Mobilink in 1998, both services lost market share. In 2003, Millicom Corporation, who at that time were majority owners of Instaphone, bought Paktel for a sum rumoured to be $0 from Cable & Wireless. Millicom installed a new management team headed by John Tumelty, former CEO of Instaphone, and Chief Financial Officer David Ordman. In January 2007 Millicom sold Paktel for $284 million to China Mobile.
Sale of Paktel to China Mobile and rename to CMPak
On January 22, 2007, Millicom International Cellular S.A. stated that it would sell its 88.86 percent stake in Paktel Ltd. to China Mobile for $284 million, which includes the repayment of intercompany debt. The sale implies an enterprise value for Paktel of $460 million, Millicom said in its press release. Merrill Lynch advised China Mobile on the transaction.
Moreover, PTA (Pakistan Telecommunication Authority) has announced that it may resolve the frequency issue with China Mobile, as it was one of the main reason for pullout by Millicom International Cellular S.A.
CMPak has now been rebranded to Zong
Paktel has a subscriber base of 5.29 million as of October 2008.
Millicom to sell Paktel for $284 million
China Mobile's Press Release for the acquisition of Paktel Ltd.
Millicom International Cellular S.A. Press Release for the sale of Paktel Ltd. Divested Operations for Millicom
- "Paktel renamed CMPak" (in zh-cn). China Mobile Limited. Retrieved 2007-12-11.
- "May 2007 Archived Press Clippings : LTC International, Telecom Headlines and Industry News". LTC International Inc. Retrieved 2007-12-11.
- Official site