KARACHI, July 26: Pakistan Telecommunication Company Limited (PTCL) is still tight-lipped on the sum of money due from WorldCom, but analysts suggest that around $15 million may have been blocked. International revenue generated by Pakistan’s telecommunication monopoly works out to around $350 million, of which 30-35 per cent accrues through international call traffic from USA. “This traffic comes via three companies, namely AT&T, MCI and Sprint”, say analysts at IP Securities, adding that major exposure is in AT&T and MCI. The latter has been a WorldCom subsidiary since its takeover in 1997.

According to calculations by analysts at IvestCap, Pakistan Telecom receives between $10-15 million on average from MCI, each quarter. As the spotlight on WorldCom fell in early June, the last quarter (March-June) payment would still be outstanding. “It may be too early to conclude whether the amount would be paid or remain in default”, say analysts, but WorldCom’s decision to file for Chapter-11 bankruptcy protection is a cause for concern.

The financial fraud of $3.8 billion has pushed WorldCom — world’s largest provider of internet connections and the second largest long-distance telephone operator in US — into history’s biggest bankruptcy. It has also sent telecommunication companies everywhere scurrying for safety.

Pakistan, by the way, is not the only country in this region to be concerned over the WorldCom debacle; its neighbours on both flanks seem equally worried.

In India, Videsh Sanchar Nigam (VSNL), the country’s biggest international phone service provider said in a statement that it would take all steps to recover the remaining dues — estimated to be about $20 million, from WorldCom for the voice traffic VSNL carried for the US telecom giant.

On the Western side, one of the chief worries of the Afghan government — according to a report published in Financial Times — is to handle the potential local effects of WorldCom’s bankruptcy crisis. WorldCom is one of the largest vendors to Afghan Wireless Communication Company (AWCC), a joint venture with the government that has the monopoly of providing mobile phone service to Kabul.

The delay or default in payment of PTCL’s outstanding dues of $15 million is likely to have negative implications on the Pakistan telecom’s cash flows. Issuing ‘profit warnings’ by corporates is not yet in fashion or a regulatory demand in Pakistan.

With no word from PTCL, investors in the company must make their own assessments or trade in its stock on rumours.