Friday, November 20, 2015

How North Korea Got A Cell Network For Free

Kim Jong Un inspects North Korea's first smartphone, the Aririang phone. KCNA/ Reuters

Washington Post: North Korea tells Egyptian company: Thanks for the cellphones. We’ll take the company, too.

Turns out it’s really hard for foreign investors to make money in North Korea. Who could have guessed? Well, pretty much everyone.

But Orascom, a plucky Egyptian company, tried anyway, apparently hoping to gain a foothold in a country of 26 million potential customers.

Orascom Telecom and Media Technology is the company behind the astonishing explosion of cell phone usage in hermetically sealed North Korea in recent years.

After taking a 75 percent stake in a new joint venture in 2008, as many as three million North Koreans have signed up for “Koryolink” cell phone services, using re-branded Chinese flip or smart phones.

Update: WaPo: North Korea suckered Egyptian telecom on cell phone system (Hot Air)

WNU Editor: Over the years I have used my business contacts in both Russia and China to advise them on business opportunities in Canada and the U.S.. I have also advised Canadian companies on doing business in both of these countries. In the past I have been approached by Canadian companies if I had any contacts in China who could get them into North Korea ... in fact they have begged me to make the necessary introductions. And while  do have these contacts .... I also know that my Chinese friends would never never never invest a penny into North Korea, they know that it would just be stolen ... a fact that I have repeatedly told my Canadian friends. But greed is one of our deadly sins ....  a fact that this Egyptian company is learning too well right now.

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