Banglalink
Historical Background:
Sheba Telecom(PVT Ltd)-after talking lots- finally was granted license in 1989 to operate in the rural areas of 199 upazilas. Later it obtained GSM license in 1996 to extend its business to cellular mobile, radio telephone services. It launched operation in the last quarter of 1997 as a Bangladesh-Malaysia joint venture.
Tigers' Den (banglalink's headquarters) at Gulshan.
In July, 2004, it was reported that Egypt based Orascom Telecom is set to purchase the Malaysian stakes in Sheba Telecom through a hush-hush deal, as Sheba had failed to tap the business potentials in Bangladesh mainly due to a chronic feud between its Malaysian and Bangladeshi partners. An agreement was reached with Orascom worth US$25 million was finalized in secret. The pact has been kept secret for legal reasons, considering financial fallout and because of the feud.
The main reason for the undercover dealing was the joint venture agreement between the Bangladeshi and the Malaysian partners, which dictates that if any party sells its Sheba shares, the other party will enjoy the first right to buy that.
Integrated Services Ltd. (ISL), the Bangladeshi partner, was being ‘officially’ shown as purchasing the shares held by Technology Resources Industries (TRI) of Malaysia for $15 million. ISL then paid another $10 million to Standard Chartered Bank to settle Sheba's liabilities.
In September, 2004, Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom (Pvt.) Limited (“Sheba”). It was acquired for US$60 million. Sheba had a base of 59,000 users, of whom 49,000 were regular when it was sold. Afterward it was re-branded and launched its services under the “Banglalink” brand on February 10, 2005. Banglalink’s license is a nationwide 15-year GSM license and will expire in November, 2011.
In March, 2008, Sheba Telecom (Pvt.) Limited changed its name as Orascom Telecom Bangladesh Limited, matching its parent company name.
Product Profile and Market
Sheba Telecom(PVT Ltd)-after talking lots- finally was granted license in 1989 to operate in the rural areas of 199 upazilas. Later it obtained GSM license in 1996 to extend its business to cellular mobile, radio telephone services. It launched operation in the last quarter of 1997 as a Bangladesh-Malaysia joint venture.
Tigers' Den (banglalink's headquarters) at Gulshan.
In July, 2004, it was reported that Egypt based Orascom Telecom is set to purchase the Malaysian stakes in Sheba Telecom through a hush-hush deal, as Sheba had failed to tap the business potentials in Bangladesh mainly due to a chronic feud between its Malaysian and Bangladeshi partners. An agreement was reached with Orascom worth US$25 million was finalized in secret. The pact has been kept secret for legal reasons, considering financial fallout and because of the feud.
The main reason for the undercover dealing was the joint venture agreement between the Bangladeshi and the Malaysian partners, which dictates that if any party sells its Sheba shares, the other party will enjoy the first right to buy that.
Integrated Services Ltd. (ISL), the Bangladeshi partner, was being ‘officially’ shown as purchasing the shares held by Technology Resources Industries (TRI) of Malaysia for $15 million. ISL then paid another $10 million to Standard Chartered Bank to settle Sheba's liabilities.
In September, 2004, Orascom Telecom Holdings purchased 100% of the shares of Sheba Telecom (Pvt.) Limited (“Sheba”). It was acquired for US$60 million. Sheba had a base of 59,000 users, of whom 49,000 were regular when it was sold. Afterward it was re-branded and launched its services under the “Banglalink” brand on February 10, 2005. Banglalink’s license is a nationwide 15-year GSM license and will expire in November, 2011.
In March, 2008, Sheba Telecom (Pvt.) Limited changed its name as Orascom Telecom Bangladesh Limited, matching its parent company name.
Product Profile and Market