Lebanon Agrees to Five Month Extension for Cellular Networks

The Lebanon's Telecommunications Minister Jean-Louis Qordahi has said that the government has signed an agreement with the country's two cell phone networks, Cellis and LibanCell to allow them to continue to operate their networks for a further five months. The networks will be paid a "management fee" of between US$36 million and US$38 million, while all the revenues will go to the government. Both networks are also to put down a US$20 million deposit.

The consulting firm KPMG is still working out the value of the two networks, after the government cancelled the companies original BOT (Build, Operate & Transfer) contracts. Once the dispute is resolved with the companies, the government plans to auction two commercial 20 year licenses.

The government is expected to collect an additional US$25 million per month during the extension as it will keep all the network revenues for itself, as opposed to earning a 40% share as before.'"

Posted to the site on 12th August 2002