Syrian Telco Plans US$1.5 Billion Investment Over 5 Years

The Syrian Telecommunication Establishment (STE) says that it expects revenues of SYP62.5 billion (US$1.25 billion) during 2008 - a rise of nearly 13% from 2007, thanks mainly due to revenues from the country's two mobile network operators.

The landline operator expects fees to jump by nearly 24% thanks to higher sales at the two companies. Under the current Build-Operate-Transfer (BOT) license, the two mobile operators pass half their revenues to the landline company. Last year they were required to pass 40% of revenues.

This year, STE expects to collect US$550 million from MTN and Syriatel, up from the US$420 million) in 2007.

There is also a debate between STE, which acts as the country's telecoms regulator and the two operators over plans to license a third GSM network in the country. Under the current license terms, MTN and Syriatel were granted a seven year duopoly. However, while STE says that commenced in April 2001, the operators say their formal licenses were not actually granted until the following year.

STE also announced plans to spend up to US$1.5 billion over the next five years expanding its landline network to rural areas.

STE is 100% owned by the Syrian government.

Posted to the site on 27th February 2008