DUBAI • Qatar Telecommunications Co (Qtel) said yesterday it agreed to buy a telecom operator in Pakistan, its first in the country, as it seeks to expand outside its home base where it is losing its monopoly.

State-controlled Qtel and Saudi Arabia's A A Turki Corp for Trading and Contracting (Atco) agreed to buy 75 per cent of Pakistan's Burraq Telecom for $12.3m, the companies said in a statement. The deal still needs regulatory approval.

Burraq Telecom offers international calling, wireless telephone and broadband Internet services, according to its website.

"The price is very reasonable to access to the Pakistani market, which is a fast-growing market with huge potential," said Marc Hammoud, a telecom analyst at Dubai-based investment bank Shuaa Capital. "They can do a quick return on investment on this." Pakistan is Asia's fourth-most populous country.

As competition has risen at home, Gulf Arab telecom operators have been hunting for foreign assets. Asia is a top priority, Hammoud said.

Emirates Telecommunications Corp (Etisalat) bought a 26 per cent stake in Pakistan Telecommunication Co Ltd for $2.6bn in 2005, and this year started a telecom software unit in India. Qtel is expanding outside Qatar as the Gulf Arab state prepares to sell a second mobile phone licence this year, ending the last Arab monopoly. Qatar will also sell a second fixed-line licence.