Egypt’s Orascom Telecom Holding SAE is planning to launch 3G mobile-phone services in North Korea Monday, to become the first foreign telecom company to invest in communist nation as it deals with the economic crisis. The company plans to invest $400 million in network infrastructure and license fees over the first three years. Orascom is confident North Korea is opening up its economy and says it has been assured by the -government that everyone will be allowed to buy a mobile. However, experts think that such a volte-face is highly unlikely and reckon only senior military and government officials will be allowed access, and then only to a closed network.
Diab said”According to their strategy, they’re going to become margin positive in the first year”. He explains why the company would want to enter into a market where their subscriber base would initially largely be restricted to top government and military officials. Orascom Telecom spokeswoman Rasha Mohamed confirmed in an e-mail on Sunday that the service will be launched on Monday. Additional details were not immediately available. The company said that it has won exclusive rights on Jan. 31 in North Korea for four years. The business in North Korea is expected to generate revenue per user between $12 to $15 in 2008 from three different cities.
