China Mobile may bring solar power technology

[Naveed Yaseen]

Plans further investment of $500 million

Wednesday, August 19, 2009
By Azeem Samar

BEIJING: China Mobile Communication Corporation is actively considering introducing solar power technology in Pakistan for electrifying cellular base stations of its subsidiary China Mobile Pakistan. The move comes amid an acute power deficit and prolonged load-shedding in Pakistan.

CMCC is already applying solar power technology at its 2,000 base stations, out of total 170,000, across China, the company’s Chief Executive, Wang Jianzhou, told a delegation of Pakistani media persons who visited the headquarters of China Mobile in Beijing recently.

Jianzhou said use of solar power technology was also part of the Green Action Plan of the company aimed at reducing pollution by emitting less carbon and consuming less energy. “We think that reducing hazardous emissions is an important goal of our company,” he said.

China Mobile Pakistan, in a drive to widen its network, has built 4,500 base stations for providing cellular phone services to its 6.5 million subscribers at 3,500 locations in the four provinces, Northern Areas and Azad Kashmir.

The CMCC chief said power crisis was one of the major hurdles in smooth functioning and growth of cellular phone companies in Pakistan where cell stations had to be equipped with electricity generators at all times, which increased operating costs. He cited higher taxes, high operating costs and import duties on equipment purchase as other major challenges for the cellphone operators in an environment where profit margins had been narrowing due to stiff competition.

Jianzhou, who is also Chairman and CEO of China Mobile Pakistan, said the company had been anxiously waiting for a Long Distance and International (LDI) licence from the Pakistan government in a bid to expand business in the first overseas venture of the company. “We will also try to improve management to reduce the operating cost of our business in Pakistan.” He said by and large he was satisfied with doing business in a friendly environment in Pakistan where the market had a lot of potential for penetration and growth. “There is a big difference between the markets for cellular phone operators in Pakistan and China and the CMCC will gain a lot of experience by doing business in Pakistan.

“This experience will benefit the largest cellphone company of the world a lot by helping it to expand its business to other parts of the globe.”

China Mobile Pakistan would further invest US$500 million by the end of the current year to propel growth of its cellular phone service, Zong, which was providing thousands of direct and indirect jobs. “So far the performance of Zong is in line with our expectations and we will do more to boost its output,” he said.

To a question, Jianzhou dismissed all reports as rumours about acquisition of other cellphone companies in the region by China Mobile Pakistan. “We will let you know whenever such development takes place,” he said.

To another question, he said CMCC had obtained this year a licence for offering hi-tech 3G (third generation) services to its subscribers in China. However, at present market and business conditions in Pakistan were not favourable to introduce such a state-of-the-art service there.

“China’s cellular phone market is at a more advanced stage with greater availability of modern infrastructure for introducing such high-end services for the consumers,” he said.

http://www.thenews.com.pk/daily_detail.asp?id=193734