Orascom Watch

The Egyptian conglomerate that is rebuilding the Ryugyong Hotel, and whose relationship with North Korea showed signs of trouble several months ago, is reporting that it’s actually selling mobile phones to North Koreans:

Egypt-based mobile operator Orascom Telecom earned US$312,000 in first-quarter sales this year from its mobile service in North Korea on surging demand among the communist nation’s upper class, a company press release said Thursday.

More than 19,200 people have signed up for Orascom’s mobile phone service as of March since it began with 5,300 subscribers last December, according to the firm’s report on its first quarter earnings in 2009.  [Yonhap]

The Joongang Ilbo adds:

Naguib Sawiris, the firm’s chief executive, said in a conference in Seoul last week the number of subscribers hit 40,000 in April and is expected to break the 100,000 mark by the end of this year.  [Joongang Ilbo]

I admit to some ambivalence about this.  On one hand, the greatest obstacle to the subversion of the regime is the mutual isolation of its subjects.  To the extent the proliferation of mobile phones affects that, it’s a positive development.  Frankly, I’m amazed that the regime is letting this many subjects have cell phones at all.  Unfortunately, the regime has certainly thought of these risks, too; as a result, the phones will be heavily monitored and restricted to the trusted elite.  They’re also part of a transaction that must be highly profitable for the regime.

The debate may be academic anyway.  With tough new sanctions apparently on the way, it’s hard to imagine how Orascom can finance its operations or recoup its profits.  Next quarter’s results will be more telling.