Pakistan cancels telecoms licence

Pakistan's telecoms regulator has cancelled a mobile phone licence issued to Space Telecom after the firm missed a deadline to make a 25% downpayment.

The group failed to make the payment because of a legal dispute among partners in the consortium.

Earlier this month, Space won an auction for the licence, agreeing to pay $291m (£163m) for it.

The licence has now been offered to the next highest bidder, Al-Warid, a local-Dubai group.

Al-Warid has agreed to match Space's bid, Reuters quoted a Pakistan Telecom Authority official as saying.

The dispute among Space Telecom partners will be heard in court on 8 May, Reuters has reported.

The group's investors include Pakistan Oil Fields and Syriatel.

Norway's Telenor, also a successful bidder in the auction, earlier made its downpayment on a licence, reports said.

Pakistan hopes to build its mobile user base from 3 million - 2% of its 150 million population - to 15 million in the next four years.