For a country that receives international aid as it seems unable to feed its population and yet claims to be self-sufficient as a nation, North Korea, or officially the Democratic People’s Republic of Korea (DPRK) has accepted inward investment of US$400 million from Orascom to build a 3G mobile network.

The country does have an existing mobile network of sorts, mainly for the use of communist party members, government officials and the military and has not been available to the masses and no further information is available to say this situation will change for the new network.

Orascom has announced that its historic 3G network launch in North Korea will be known as 'Koryolink' and confirmed that the operation will be a joint-venture between Orascom Telecom Holding (75 percent) and the local state-owned body, Korea Posts and Telecomm Corp (KPTC), which will hold the remaining 25 percent.

The licence was granted to CHEO Technology JV Co, the joint venture company. In its first official communication regarding the launch, Orascom said the network would initially be deployed in Pyongyang, North Korea's capital city with a population of some two million, and marked the first stage in an "ambitious plan" to expand the network across the entire country.

"This is not just about providing 3G mobile services; we are making history in a country that is developing and opening up in a remarkable way," said Naguib Sawiris, Orascom's chairman and CEO.

Orascom's license in the country, reportedly allows it to offer mobile services over a 25-year period with an exclusivity period of four years. The company is expected to invest US$400 million in network infrastructure in the country over the next three years. Orascom has also brushed aside concerns that the authoritarian nature of the state will severely limit the number of people able to access mobile devices and services.

Source: Kendrick Struthers-Watson