MTN seeks full licence in Syria

MTN Group is negotiating to upgrade its existing build operate transfer (BOT) contract in war-torn Syria into a full, 20-year operating licence, according to the Financial Times.

The company will pay an initial licence fee of between SYP18 billion (US$120 million) and SYP25 billion, which is equivalent to approximately one year’s revenue that it currently pays to the Syrian government under its BOT arrangement.

MTN has bankrolled about US$250 million in dividends in Syria that it has been unable to move out of the country. The company hopes to finalise the licence deal before the end of 2014.

MTN is the smaller of two operators in the country with 5.76 million mobile connections. Rival Syriatel, which is controlled by local tycoon Rami Makhlouf, has 6.68 million connections.