With the entry of Singapore Telecommunications (SingTel), arguably Asia's largest mobile-phone operator, into the fast-growing Bangladesh cellphone market earlier this month, a price war is in the offing.
SingTel has announced its acquisition of a 45 per cent stake in Pacific Bangladesh Telecom with an investment of US$118 million.
Under the agreement, SingTel has an option to buy a further 15 per cent of Pacific Bangladesh, the country's oldest cellphone operator, under the brand name City Cell for US$65 million more. The option could be exercised between April and June 2007.
SingTel will have three members on Pacific Bangladesh's board.
Pacific Bangladesh vice-chairman Faisal Morshed Khan, who signed the deal, said in Dhaka that SingTel would also invest US$150 million to expand City Cell's network to 3.5 million more prospective subscribers.
Despite the fact that Pacific Bangladesh is the country's longest-established cellphone operator, Grameen Phone leads the market with more than 3.5 million subscribers, followed by AKTel, Banglalink and City Cell, which has only 350,000 subscribers.
