$25m is the amount that Wateen and Qubee intend to invest to re-energise the wireless broadband market. PHOTO: FILE
LAHORE: Abu Dhabi Group, the major shareholder of Wateen Telecom, and New Silk Route Private Equity (PE) Asia Fund, the ultimate major shareholder of Augere/Qubee, are looking to combine their wireless broadband businesses in Pakistan.
The agreement will see Wateen and Qubee forming the second largest broadband service provider in Pakistan, with over 200,000 subscribers, added a joint statement from the two companies.
With the formation of a new business, Wateen and Qubee intend to re-energise the wireless broadband market with planned investments of more than $25 million for the improvement and expansion in coverage for the combined network of both companies.
The network upgrade will make it ‘the best’ in class high speed broadband network with the phased upgrade to 4G LTE (Long Term Evolution) technology that will contribute to a broadband revolution in Pakistan and significantly enhance its position in the new digital economy.
The new business will also pave the way for investments available to introduce innovative value-added services and devices to improve broadband penetration in Pakistan, said the joint statement.
Wateen Telecom Chief Executive Officer Naeem Zamindar said that the development of the new broadband business will usher a new era of collaboration for the broadband industry.
“The formation aims to provide access to high-speed 4G data and cutting edge digital services for the people of Pakistan,” added Zamindar.
CEO Augere-Qubee Pakistan Jamal Nasir Khan said that he was delighted at the formation of a ‘new stronger broadband business in Pakistan’.
“We believe that the combined business will better serve customers by providing high capacity affordable broadband connections which will drive up penetration in Pakistan,” said Khan, while adding that this will enable large number of people to join the digital community with ‘superfast’ access to internet.
The transaction is subject to the requisite corporate, regulatory and governmental approvals, and is targeted to be completed within the first half of 2014.
Published in The Express Tribune, December 6th, 2013.
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