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January 10, 2009

Lebanonwire

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Beirut receives bids to run cellular grids for one year

BEIRUT, Lebanon  - The Telecommunication Ministry on Friday received offers to operate Lebanon's two cellular networks from three leading companies. A source at the ministry confirmed that Francetelecom, Cairo-based Orascom Telecommunications and Kuwait-based Zain had delivered offers offers to Telecoms Minister Jebran Bassil and his adviser in sealed envelopes.

Bassil is expected to submit the offers to the Cabinet for study by ministers.

The contracts with MTC Touch and Alfa, the current operators of the mobile networks, expired in December 2008.

A telecoms expert who spoke on condition of anonymity told The Daily Star that Zain, which already operates MTC Touch, may have a good chance to renew its contract for one more year.

"Zain and Francetelecom have wide experience in the telecom field and the minister will surely look into the track record of any company seeking to operate the country's cellular networks," the expert said.

Under the one-year contracts, the companies that operate the networks are expected to be paid monthly fees. MTC Touch and Alfa operated the networks for $4 million a month each.

Bassil has said repeatedly that he wants the new companies that will operate the networks to expand the number of lines and improve efficiency. The overhaul is forecast to cost at least $100 million.

There are 1.3 million mobile subscribers in Lebanon but Bassil has been pressing for that number of subscribers to be increased to more than 2 million before the end of 2009.

The Cabinet has again delayed the full privatization of the cellular networks due to unfavorable market conditions caused by the global financial crisis. -Daily Star

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