Telecom News Bulletin

Etisalat International Pakistan (EIP) is likely to send $100 million as profits to the United Arab Emirates in 2010-11, reveals a document available with The News.

It sent back about $475 million during previous three years, which is about one fifth of the price it paid for PTCL, since taking over the management of the company, according to the data in the document.

The company earned Rs 15.64 billion ($250 million) in the first year after the handover. It earned Rs 9.151 billion ($125 million) in the next and Rs 9.231 billion ($100 million) in 2009-10, according to the document.

The company is projecting Rs 9.124 billion profit ($100 million) during the current financial year, it added.

Besides this all, the EIP is also earning money from Ufone Pakistan, a subsidiary of PTCL, and sending it home. All foreign companies are free to repatriate 100 percent of the profit they earn.

Etisalat, a UAE telecom giant, signed an agreement to purchase a 26 percent stake in PTCL for $2.6 billon through Etisalat International Pakistan (EIP) in 2006. PTCL’s profits have declined after privatisation.

EIP has so far paid only $1.8 billion to Pakistan, conditioning the payment of remaining $800 million with the transfer of all PTCL properties to it. Farah Qamar, spokesman for the company refused to offer any comment.

Etisalat, the Arab world’s second-biggest telecoms firm, has faced increased competition in its home market after its monopoly was broken in 2007 by a Dubai-based firm.

Via The News