Syria sets EUR90m reserve on third mobile licence

The auction for a third mobile network operating licence in Syria will begin in April with a starting bid of EUR90 million (USD122.2 million), according to the Deputy Minister of Telecommunications, Mohammad Al-Jallali, as quoted by Syria Report. According to TeleGeography’s GlobalComms Database, at the end of last year the Syrian authorities set 12 April 2011 as date to auction the country’s third mobile licence. At the time Imad Sabouni, the Syrian communications and technology minister, added that to facilitate the process an independent regulator would be set up ahead of the auction. However, a separate report suggested that the five firms pre-qualified to bid for the licence – Turkcell, France Telecom, Saudi Telecom Company, Etisalat and Qtel – have all reacted strongly to the Syrian government’s call that they provide revenue projections for their prospective businesses there. In a meeting in Damascus in 4Q10, Syrian telecom officials came under scrutiny concerning ‘sections in the tender where investors see risk, and vagueness about certain clauses.’ In particular, bidders are concerned that the government regulate roaming agreements with the country’s incumbent cellcos MTN Syria and SyriaTel, so the new operator would not face a disadvantage. Objections were also raised concerning the state’s call that bidders submit a business plan with revenue projection – even though the award is being decided through an auction. The licence tender requires the winning bidder to give 25% of its annual mobile revenue to the government, and stipulates that Syria’s state telecoms company STE will hold a 20% stake in the new mobile operator.