China Mobile International, a Chinese owned telecommunications company also the parent company of Zong, has reportedly began talks to acquire majority stakes in Transworld.
If China Mobile acquires the majority stakes as planned, Zong will gain access to Transworld’s extensive IP network in and outside Pakistan. The talks are being held abroad and there is no official news as of yet. However, if a deal is made, it will be announced by both the groups very soon.
Transworld is Co-owned by Orascom Investment Holding and Dr. Omar Abdul Mone’m Yousuf Al Zawawi of the Sultanate of Oman. If it all goes according to the expectations of China Mobile, Orascom will sell the majority of its shares to China Mobile. As a result, China Mobile will become majority shareholder in the company and will gain the management control of the business as well.
Transworld is PTCL’s largest competitor in the local market in owning and operating submarine fiber optic cable networks. Transworld has also successfully obtained submarine cables diversely around Pakistan’s eastern and western sides, for creating concrete route diversity and resilience.
Transworld’s Fiber Optic Network in Pakistan.
Transworld began its operations in Pakistan during 2006, and now owns a 1,300 KM submarine cable system TW1. The company is also a consortium member of the 20,000KM fiber optic cable system SEA-ME-WE 5, which is a multi regional data superhighway connecting Pakistan to Asia Pacific, Middle East and Europe. With POPs in all major cities of Pakistan, Transworld has some 40% market share in enterprise bandwidth segment while it has also stepped into FTTH retail business lately.
This deal will allow Zong, to expand its business, surpassing the benchmarks of the local industry by putting itself light years ahead in technology. Zong will get a chance to play aggressively in wireless data market and explore FTTH business opportunities.
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