Spacetel Syria (MTN)

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In January 2001, Investcom, a Luxembourg-based company which was partly owned by the Lebanese Mikati Group in partnership with Syrian investors, won one of two licenses to operate a GSM 900 network on a build-operate-transfer basis for 15 years. Along with the other winning bidder, SyriaTel, the company paid the government an upfront fee of US$20 million, with an additional US$15 million fee payable to use GSM 1800 Mhz frequency bands without further bidding. Also according to the BOT license contract, the company was to give the Syrian government 30% of its revenue in the first three years, 40% during the second three years, and 50% in the remaining period. Spacetel was to spend about US$31 million dollars on their initial mobile network, which was set up in the capital, Damascus, the northern city of Aleppo and the western city of Latakia for a trial period of one year. The company launched services under the brand name "Spacetel." In June of 2003, Spacetel signed a US$20 million loan with the Islamic Corporation for the Development of the Private Sector, part of the Islamic Development Bank, to be used for network expansion and other technical development projects. In September of 2004, the OPEC Fund for International Development agreed to lend US$10 million to SpaceTel, for which it intended to use the funds to expand its existing network. At that time, Spacetel had about 770,000 subscribers, representing about a 45% market share and trailing SyriaTel which had the other 55%. In 2004 MIGA issued guarantees of $55.96 million and $19.0 million to Investcom Holding S.A. of Luxembourg and Teleinvest Ltd. of the Cayman Islands for their respective $62.18 million and $21.15 million equity investments in Spacetel Syria S.A. Both guarantees covered a period of ten years and provided coverage against the risks of transfer restrictions, expropriation, war and civil disturbance, and breach of contract. In July 2006 Investcom was acquired by South African group MTN. For 2006 investment figures are not available for 2nd half of the year. Entered amount = 1st half capex * 2, since subscriber growth was fairly steady. 2011: Wireless Intelligence 2012 capex: Wireless Intelligence