The WorldCALL Broadband Limited (WBL) is setting up a Hybrid
Fibre Co-axial (HFC) network which would provide quality cable
TV and high speed Internet access to people.
The chairman of WBL, Salman Taseer, talking to newsmen on Monday
after an 'Investor Conference' arranged for the upcoming 'Initial
Public Offering' of WBL, said that WBL broadband network would
be the largest of its kind in the country.
Salman said that by March this year, "we would become
telephone company like Pakistan Telecommunication Company
Limited" (PTCL) and would offer telephone connection
without any charges.
"We are the only multi-service operator in the country
and have an economic monopoly. If anybody is coming in for
competition, it would be impossible for them to compete with
us," he said, adding that "we have advantage over
PTCL as we can offer other services, like Internet, Cable
TV and telephony, on the same cable. The WBL will also provide
concessions on these services if the consumer bills exceed
eg 2,000 rupees."
The telephony services would be provided as soon as the licence
for this service is issued which is expected in March this
year, providing first mover advantage.
The company will be able to offer telephony services immediately
over its HFC network as compared to other players who will
have to apply for frequency allocation through a bidding process
that will take significant time, he said, adding that the
network can offer other potential services in future as well,
such as Video on Demand, Pay Per View, Video Conferencing,
Distance Learning, Data Network service etc.
These services will be added gradually, subject to requisite
approvals and market appetite.
Salman said, "The tariff rates are expected to be reduced
by 30 percent in 2004 on local and international dialling.
Our call rates will be 20 percent cheaper than PTCL,"
he added.
The company is going to offer public issue of 30,000,000
ordinary shares at an offer price of Rs 10 per share on January
7 and 8 during the banking hours.
The company enjoys a competitive edge through a comprehensive
coverage against other cable TV operators (or potential new
entrants) most of whom provide service in only small areas.
The only multi-service operator giving last-mile solution
and having right of way with superior technology, the company
has proven credentials as the Wor1dCALL Group operates country's
first HFC broadband network also in Lahore.
The company has an interactive capability which would provides
the option of 'multiple revenue streams', thereby allowing
it to offer a number of value-added services and tap a relatively
larger portion of the market by being superior, cost-effective
and user-friendly.
United Bank Limited (UBL) is acting as the
Financial Advisor, Lead Arranger and Underwriter for the company's
Rs 1.5 billion equity issue.
The AKD Securities (Pvt) Limited and Elixir Securities Pakistan
(Pvt) Limited are acting as Co-Arrangers and Co-Underwriters.
Out of the Rs 1.5 billion equity issue, sponsors have injected
Rs 460 million whereas foreign investors have participated
to the tune of Rs 560 million.
The Wor1dCALL Group companies have been successfully attracting
foreign investors for their various ventures. These investors
have come in as joint venture partners, co-sponsors and or
through private placement.
The company is only group in the country which has the credentials
and experience to deploy such a network following successful
implementation of the first HFC network in the city of Lahore.
The UBL has been a strategic partner of WorldCALL Group in
its progress. UBL's Investment Banking, has established a
strong track record of successfully and creatively providing
a wide range of products and services. |
