Zong stands on its own feet in four years time

China Mobile confirms participation in 3G auction.

BEIJING: China Mobile Communications Corporation, the parent company of Zong, has confirmed that the telecom giant is generating enough cash to run its own operation and does not need any capital injection from its parent company, the world’s biggest mobile operator by users.

“More than four years ago, when we bought Paktel, it was on the brink of bankruptcy, but now the company can generate enough cash flow to maintain its operations,” said Wang Jianzhou, chairman of China Mobile, in an exclusive interview to China Daily.

Zong brand has seen largest net growth in mobile users in Pakistan in the past three years, according to Pakistan Telecommunication Authority. Zong had a user base of 13.2 million by October, rising from less than 1.5 million in 2007.

The parent company of Zong also confirmed its participation in third-generation wireless spectrum auction after enjoying a healthy run so far in the country.

With Pakistan as an example, CMCC intends to expand its operations to a greater number of emerging markets.

The company’s decision to join the auction may help it strengthen its foothold in the fast-growing telecom market in South Asia. Pakistan has been the only overseas market for China Mobile since it acquired Paktel Ltd, for $284 million in 2007. The company was renamed China Mobile Pakistan, or CMPak, and its services were rebranded as “Zong” in 2008.

Earlier this month, Fan Yunjun, CEO of CMPak Ltd, told website of China Radio International that China Mobile has invested $1.5 billion in Pakistan to date.

Published in The Express Tribune, March 15^th, 2012.