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Multinet, Telenor Pakistan Seal USD 40 Million Contracts

Islamabad, December 2006:
Multinet Pakistan (Private) Limited (Multinet) sealed a 20-year capacity contract with Telenor Pakistan. The capacity contract will enable Telenor to utilise fibre optic cable pairs and associated co-location facilities on Multinet Pakistan’s national long haul optical fibre transmission network (“Project Ittehad”). Multinet and Telenor also signed a service contract which entails maintenance and associated services from Multinet for the duration of the 20-year contract. The aggregate amount of both the capacity contract and the service contract is estimated to be USD40 million.

The first of its kind in Pakistan, the “Indefeasible Right of Use” (“IRU”) contract will enable Telenor to have virtual ownership of four cores of optic fibre in the long haul network. The contract between Multinet and Telenor will also enable Telenor to manage its bandwidth and traffic requirements with low variability in cost and with significant savings.

The exchange of signed documents was witnessed by the Malaysian Minister of International Trade and Industry, Datuk Seri Rafidah Aziz. Multinet is a subsidiary of Telekom Malaysia Berhad (TM), through its investment arm, TM International Sdn Bhd.

Project Ittehad is a 4,100 km fibre optic backbone connecting 107 cities across Pakistan – the first backbone project to be launched after Pakistan Telecommunication Co Ltd’s long haul network was completed in 1996.

“Multinet is proud to play a key role in taking Telenor’s network to reach more Pakistanis. We are fully committed towards supporting Telenor in establishing leadership in Pakistan, as well as retaining its competitiveness in the future.”

“We are confident that with our strong local presence and in-country technical and rollout expertise, we will be able to meet Telenor’s aggressive timelines as well as make sure that this project exceeds Telenor’s high expectations,” said Adnan Asdar, Chief Executive Officer of Multinet.

Mr Tore Johnsen, CEO and President of Telenor Pakistan, said that this contract was an indication of Telenor’s commitment to the Pakistani customer.

“We have confidence in Multinet’s capability and rollout programme. With this contract in place, Telenor Pakistan will ensure guaranteed service and will not be dependent on a third party because the fibre optic is wholly dedicated to us.”

Tore added that another benefit of Telenor Pakistan’s partnership with Multinet lies in the access that Telenor will enjoy to international bandwidth via SMW-4. Multinet’s global access to SMW-4 & other cable systems is by virtue of its parent company Telekom Malaysia Berhad’s (TM) partnerships in several cable systems. The deployment of this project has already started and delivery is expected to start within two months.

Meanwhile, TM International Sdn Bhd Chief Executive Officer, Mr Yusof Annuar Yaacob who witnessed the signing reiterated the importance of the contract stating that it is the first IRU done in Pakistan.

“Telenor is a significant mobile operator with investments throughout the world and is a major upcoming cell phone operator in Pakistan; we at the parent company are very happy that Telenor has chosen Multinet as its partner of choice.” said Yusof.

 
 
 
     
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