ISLAMABAD, Aug 11: Pakistan Telecommunication Company Limited has said it will spend Rs10-12 billion to add 690,000 new phone lines to its fixed-line network over the next 18 months.

In an interview with Dow Jones Newswires, PTCL chairman and CEO Akhtar Ahmad Bajwa said the company would use a cheaper wireless technology to expand its network in rural areas.

“It’s going to be a big breakthrough in those areas where we’re unable to serve with the conventional means because of higher costs involved in developing the infrastructure,” Bajwa said. He said some 190,000 new lines would use the wireless technology.

Pakistan’s fixed-line ownership is low — at 2.7 lines for every 1,000 people at the end of 2001. PTCL owns 95 per cent of the business with 4.9 million lines at the end of June 30. There is huge demand for phone lines in Pakistan, especially in the rural areas where the state monopoly has not developed the necessary infrastructure.

Mr Bajwa said the operator would likely start facing competition next year following a government decision last month to deregulate the country’s telecommunications sector.

“We may have an impact next year, but we still believe we are going to do better than what we did last year,” he said.

PTCL is expected to announce its last financial year’s results in late September. Analysts expect PTCL’s net profit to have risen 6.5 per cent to Rs21.1 billion.

Under the new policy, licences will be issued to private operators for 20 years to provide local, long distance and international phone services. Mr Bajwa said competition was more likely in the international services segment because it was a big and growing market with five to six new operators expected to enter.

“I think there is going to be a fierce competition in this segment,” he said. PTCL, the largest listed company on the Karachi Stock Exchange in terms of market capitalization, earns about half of its revenue from international calls.

Looking ahead, Mr Bajwa said the company aimed at expanding its broadband service to all major cities through a Rs2-billion investment.

The Privatization Commission in June shortlisted three companies as potential buyers for a strategic stake in PTCL. They include Egypt’s Orascom Telecom Holding, Saudi Oger and the Turkish Menara Telecom consortium.—Dow Jones Newswires