Etisalat Interested in Investments in Syria and Lebanon

UAE based Emirates Telecommunication Co. (Etisalat) is seeking opportunities in Syria and Lebanon as licenses and privatisations are launched. The company is expecting to be able to bid for the third mobile license in Syria later this year, and will be interested in the privatisation of Lebanon's two mobile networks, if and when that eventually occurs.

"We are looking to participate in Syria's third license," Mohammad Hassan Omran, Etisalat's chairman, told Zawya Dow Jones, adding that Etisalat has also shown its "intention to the Lebanese government that when they privatize ... the mobile sector and open up their fixed line (license), we're interested."

Omran said Etisalat, flush with cash from years of strong growth, will continue to expand this year but more conservatively due to the current financial crisis. The company ruled out companies based in Europe or the Americas as possible acquisition targets.

Omran also confirmed that the company's Indian subsidiary, Swan Telecom should launch in the second half of this year and is targeting 20 million subscribers by the end of next year.

Syria  currently has two networks, locally owned Syriatel and South African owned, MTN Syria.

Last year, the U.S. Department of the Treasury blacklisted Syriatel after it named Rami Makhluf as an investor in the company. Makhluf has been subject to US sanctions since early last year under a policy of targeting people the US government accuses of benefiting from, the public corruption of senior officials of the Syrian regime. Any Syriatel assets held in the United States or within the possession or control of U.S. persons are currently blocked, and U.S. citizens are prohibited from engaging in business or transactions with the mobile network operator.

Lebanon also has two networks, both owned by the government, although managed by private companies under license. The government has been trying to sell the networks for the past couple of years, but internal politics has been constantly pushing the deadline back.

On the web: Zawya Dow Jones

Posted to the site on 19th April 2009