North Korea to Allow Mobile Services

One of the last virgin markets for mobile phone companies is about to be deflowered. According to press reports, Egyptian mobile powerhouse Orascom Telecom has won the right to offer mobile services in North Korea, a country previously unblemished by mobile use. Even foreigners are refused to permission to use their handsets in the isolated Communist country.

According to a statement on the Orascom website, posted yesterday, an operating licence has been granted to its subsidiary CHEO Technology, which is 25% owned by the state-run Korea Post and Telecommunications Corporation. Orascom, which will spend up to US$400 million on the licence plus network build, said the terms allow it to offer mobile services exclusively for the next four years and thereafter for a further 21 years.

The Egyptian company said it will rapidly build out its network starting with the capital Pyongyang and covering most of the other major cities during the next twelve months.

In fact, North Korea, which has a population of 23 million people, experimented with mobile phone services back in 2002. However, two years later the somewhat unpredictable leader changed his mind and banned citizens from using mobile devices. Shortly after this move the government began recalling all mobile phones. Only government officials are allowed to use the network that remains covering the capital.