The chairman of WBL, Salman Taseer, talking to newsmen on Monday after an 'Investor Conference' arranged for the upcoming 'Initial Public Offering' of WBL, said that WBL broadband network would be the largest of its kind in the country.
Salman said that by March this year, "we would become telephone company like Pakistan Telecommunication Company Limited" (PTCL) and would offer telephone connection without any charges.
"We are the only multi-service operator in the country and have an economic monopoly. If anybody is coming in for competition, it would be impossible for them to compete with us," he said, adding that "we have advantage over PTCL as we can offer other services, like Internet, Cable TV and telephony, on the same cable. The WBL will also provide concessions on these services if the consumer bills exceed eg 2,000 rupees."
The telephony services would be provided as soon as the licence for this service is issued which is expected in March this year, providing first mover advantage.
The company will be able to offer telephony services immediately over its HFC network as compared to other players who will have to apply for frequency allocation through a bidding process that will take significant time, he said, adding that the network can offer other potential services in future as well, such as Video on Demand, Pay Per View, Video Conferencing, Distance Learning, Data Network service etc.
These services will be added gradually, subject to requisite approvals and market appetite.
Salman said, "The tariff rates are expected to be reduced by 30 percent in 2004 on local and international dialling. Our call rates will be 20 percent cheaper than PTCL," he added.
The company is going to offer public issue of 30,000,000 ordinary shares at an offer price of Rs 10 per share on January 7 and 8 during the banking hours.
The company enjoys a competitive edge through a comprehensive coverage against other cable TV operators (or potential new entrants) most of whom provide service in only small areas.
The only multi-service operator giving last-mile solution and having right of way with superior technology, the company has proven credentials as the Wor1dCALL Group operates country's first HFC broadband network also in Lahore.
The company has an interactive capability which would provides the option of 'multiple revenue streams', thereby allowing it to offer a number of value-added services and tap a relatively larger portion of the market by being superior, cost-effective and user-friendly.
United Bank Limited (UBL) is acting as the Financial Advisor, Lead Arranger and Underwriter for the company's Rs 1.5 billion equity issue.
The AKD Securities (Pvt) Limited and Elixir Securities Pakistan (Pvt) Limited are acting as Co-Arrangers and Co-Underwriters.
Out of the Rs 1.5 billion equity issue, sponsors have injected Rs 460 million whereas foreign investors have participated to the tune of Rs 560 million.
The Wor1dCALL Group companies have been successfully attracting foreign investors for their various ventures. These investors have come in as joint venture partners, co-sponsors and or through private placement.
The company is only group in the country which has the credentials and experience to deploy such a network following successful implementation of the first HFC network in the city of Lahore.
The UBL has been a strategic partner of WorldCALL Group in its progress. UBL's Investment Banking, has established a strong track record of successfully and creatively providing a wide range of products and services.