Syria Telecom News

 

Syria: EUR 100 million loan for telecom upgrade (From menareport.com, December 19, 2005)

 

- The Facility for Euro-Mediterranean Investment and Partnership (FEMIP) is granting a EUR 100 million loan for the extension of the fixed line telephone network to poorly served areas of Syria.

 

The project referred to as the “third rural telecoms project” will connect 430,000 new customers across 4,300 villages located in mostly rural areas across the country to the telephone network through the installation of suitable access technologies based on copper, fiber or wireless solutions. The project will be implemented and managed by the Syrian Telecommunications Establishment (STE).

 

This is the first telecom sector operation signed under FEMIP in the Mediterrannean region. The finance contract was signed on 16 December 2005 in Paris by Mr Philippe de Fontaine Vive, EIB Vice-President in charge of FEMIP, and Dr. M. Bachir Munajed, Minister of Communications and Technology for Syria.

 

30 Syrian lawyers call for cellular boycott (From The Daily Star, August 30, 2004)

 

- Some thirty Syrian lawyers have called for a cellular boycott on Sept. 6, exactly three years after former deputy Raid Seif was arrested for denouncing in Parliament a mobile phone contract.

The lawyers hope mobile phone users will turn off their phones on that date for three hours from 3pm to 6pm to protest the high cost of monthly charges.

"All citizens, civil associations and organizations for the defense of human rights should stand together and send out a strong message to annul the monthly charges and an amend mobile phone contracts to safeguard the rights of the state and citizen," said Me Anouar Bounni, a human rights activist.


Two similar cellular boycotts were organized in Lebanon since July and a third boycott is planned for Aug. 16.

 

Orascom completes ownership pull out from Syriatel (From menareport.com, July 21, 2003)

- Orascom Telecom Holding (OTH), the leading GSM telecommunications and Internet services operator in the Middle East has completed the agreed transaction to dispose of its stake in Syriatel after settling a legal dispute with its local shareholder, Drex Technologies, reported Al-Iqtissadiya.

Egypt-based OTH founded the Syrian mobile company in 2001 in cooperation with Drex. The agreement, reached on July 16, 2003, settles a dispute over an Orascom allegation, submitted in October, that Drex was making use of its political affiliations to take over the company. The settlement has resolved all legal disputes and litigation in international and Syrian jurisdictions.

OTH will no longer hold any shares in Syriatel and will receive cash consideration to compensate for OTH’s initial investment, loans made to Syriatel and expenses incurred. OTH will continue to provide management expertise to Syriatel on a contract basis for a management fee.

In early 2001, the Syrian government awarded a 15-year build, operate and transfer (BOT) GSM license to Syriatel, a joint venture 25 percent owned by OT and 75 percent held by various Syrian investors. A second GSM network Spacetel is operated by Investcom, a Lebanese-Syrian joint venture.

OT wins Syrian GSM (from itp.net, March 23, 2001)

Orascom Telecom subsidiary SyriaTel won the bid to build, operate and transfer (BOT) a GSM network in Syria. The Syrian Telecommunications Establishment, who put the bids out in September last year, announced in January. A second BOT licence was awarded to Lebanese company Investcom. “With a population of over 16 million, three of which reside in the capital city, Damascus, and with its prominent role in the Middle East, Syria is definitely a very important market for OT’s regional strategy said chairman Naguib Sawiris.

The fifteen year BOT contract requires an up front payment of frequency fees of US $20 million for the GSM 900 MHz network, and an additional $15 million are to allow the operator to use the GSM 1800 MHz frequency bands, OT says in a prepared statement. The contract also defines a revenue sharing agreement. OT is obliged to transfer 30% of the revenues of the first three years, 40% of revenues generated of the second three years and 50% of the revenues of the remaining contract period.

SyriaTel is already running one of two trial networks in Syria, serving more than 11,000 subscribers in the main cities. OT hopes to sign up 75,000 customers in Syria the first year, after a network investment of US $60 million. By the end of the project, OT projects more than 850,000 users, according to the statement.

The company wasn’t as successful in the bid for a GSM licence in Nigeria. OT pulled out when the bid reached an amount of $285 million. Sawiris’s statement after the decision was short:
“We found, however, that the auction was exercised by the Nigerian government in a very professional and transparent manner.”

Analysts said the auction of four telecommunications licences in Nigeria, the most populous nation in Africa with 120 million people, marks the birth of telecommunications in Nigeria. Other West African states are expected to follow Nigeria’s move towards liberalisation soon.

Four companies qualified to pay $285 million for a license: state-owned Nigeria Telecommunication (NITEL); Communication Investments Ltd.; Econet Wireless Nigeria; and MTN Nigeria Communications Ltd. The auction brought in US $1.14 billion for government coffers; only Morocco comes close to bringing in so much money for telecommunication licences: $1 billion.

But these companies still face the task of providing telephone services to a country with a 4% density (only 4 out of 100 has a telephone line), which is well below Africa’s overall density of 12. Local reports said fewer than 500,000 of the 700,000 fixed telephone lines in the country are functioning, and only 30,000 of 810,000 NITEL mobile lines are in working condition.

Perhaps OT can count itself lucky that the company now can focus efforts on its GSM operations in Egypt, Jordan, Syria, Yemen, Pakistan, Cote d’Ivoire, Zimbabwe, Zambia, Togo, Burundi, the Central African Republic, Benin, Niger, Gabon, Chad, Congo Brazzaville, Burkina Faso, Uganda and DRC in Sub-Saharan Africa!

Arab firms win 15-year Syria mobile phone network contract (from Bahrain Tribune, January 19, 2001)

DAMASCUS (AFP) — The Syrian-Egyptian SyriaTel and Lebanese Investcom companies were jointly granted a 15-year mobile telephone exploitation concession in Syria, an official daily said yesterday.

According to the specialised Website Cellular News, the two companies beat out Turkish mobile operator Telsim.

SyriaTel and Investcom were awarded on Wednesday a build-operate-transfer (BOT) license by an ad hoc ministerial committee chaired by Vice Prime Minister Khaled Raad, and are due to install 85,000 lines, said the Al Baath newspaper, which added that work should start "as soon as the contracts are signed."

Investcom, a branch of the Lebanese group Mikati, and SyriaTel, which comprises the Egyptian company Orascom and Syrian partners, had installed an experimental mobile phone network in Syria in February. The two companies had spent $31 million on this initial mobile network, which was set up in Damascus, Aleppo, and Latakia for a trial period of one year.

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