Jazz Might Invest in Local Startups: Aamir Ibrahim

Jazz could be buying out startups, completely or maybe partially, during days to come, said Aamir Ibrahim, CEO of Jazz in an exclusive interview with ProPakistani.

Jazz has been investing heavily in startups through jazz xlr8 — a startup accelerator program  — as it aims to create a platform where startups could go to the next level.

“At some stage, we might look to partner with startups or buy equity in them if they are well aligned with our core business”, said Aamir Ibrahim.

He said that startups, by nature, are more innovative and productive as compared to larger companies. “Startups come up with ideas that could change the world and through Jazz Xcelerate, we are just trying to help such startups realize their big ideas”, said Aamir Ibrahim.

Jazz just raised over $940 million in cash through the sale of its tower-business. Aamir said that his company will be using this money to invest else where, particularly in spectrum and fiber.

“If we come across the right startup, we will go ahead and buy equity in them”, he commented.

Jazz will enter into a service agreement for the 13,000 towers it sold under a 12-year agreement. In return, Jazz will receive $666 million in cash once the transaction closes, with an additional $94 million within 12 months of the transaction.

The remaining $180 million of the sales price is expected to be a vendor loan payable to Jazz three years from closing.

While explaining the dynamics of tower-business sell out, Aamir said that Jazz will now have a chance to focus more on telecom services as towers will be managed, maintained and operated by the new owner.

It must be mentioned here that Jazz’s sell out of tower business is second largest deal — after PTCL-Etisalat — in dollar value in Pakistan.

Aamir said that network integration is being done and customers are getting amazing data speeds where the work has been completed. He confirmed that country wide Jazz customers are going to get optimized data experience after network integration will be completed.

Aamir said that his company is also open to investing in fiber business. “We are always looking at options that are integral to our business”, he said.

He explained that with growing data demands on 4G and beyond, mainly due to better HD quality phones, video streaming etc., operators will need end-to-end fiber for towers to meet the user requirements.

“In such situations, fiber becomes very important part for even wireless companies like us”, said Aamir Ibrahim.

Tech reporter with over 10 years of experience, founder of ProPakistani.PK

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    • Aap ke Birthday par aayega lagta hai Interview. Bus kuch din ka intezar hai.

      • Muhammad Abrar Ali


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        • Jee bhai woh to pata hai. Aaap Celebrity ho to aap ke birthday kab aati hai pata hai.

          • Shukiryah :

            • Muhammad Abrar Ali

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  • Nasir Khan

    Just deploy your own fiber like you did in Karachi and Lahore to connect your towers than try to buy pathetic FTTH companies. Besides Jazz directly or indirectly owned by foreigners cannot be in TV distribution business as per PEMRA rules.

  • Adonis

    first they should invest to improve network, current they hold market most pathetic network in term of voice quality and reliability

  • Nasir Karim

    If he has any intelligence he will buy Transworld. It is the only company with 2 submarine cable and the advantage pricing on international ip transit bandwidth. IP transit is the basic raw material to provide 4G services alongwith 4G and 5G spectrum. Right now Transworld and PTCL are the only ones who are owning and controlling all submarine cable capacity into Pakistan.
    Fiber and FTTH is over. Pakistan must skip ahead of FTTH and move to gigabit wireless. In my opinion CEO is wasting money to buy any FTTH provider like Optix, FiberStorm or Nayatel. Yes they could buy Multinet/Optix and then invest in SRG submarine cable for free.

    • Nasir Khan

      HAHAHAHA great minds and Nasirs think alike:)
      I agree with you but like I mentioned above, Jazz should instead of buying out pathetic FTTH companies just deploy their own fiber to connect their towers or even do long term lease for the fiber to connect to the towers like they are doing leasing on the tower itself with Edoctco/Dawood.

      Im not understand this CEO just sold his tower infrastructure and now wants to use the money to buy fibre infrastructure. Why not save the capex of fibre infrastructure to connect its towers and just do lease of it. For long term lease of fiber to connect his towers he will get excellent rates from existing FTTH companies. If he wants to still invest in fiber to this towers he should just lay his own metro which is relatively cheaper than buying a full FTTH company. It will also take little time if Jazz just hires contractor to do it.