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To accelerate liberalisation of the sector, the Ministry of Telecommunications has announced very ambitious objectives to develop infrastructure and ICT by 2013. Investment of US$ 8 billion over 10 years will be required. |
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Telecom & internet |
The fixed telephony sector is managed by a public monopoly, the Syrian Telecommunications Establishment. The STE has built an X.25 network with more than 2.4 million fixed lines, undergoing continuing development (finalisation of a contract with Siemens for the development of 1.65 million new lines) but the Frame Relay network is not yet available. It has a monopoly on internet and international communications infrastructure.
Since promulgation of law n°11 of 1991 liberalising telecommunication services, STE is gradually opening services to encourage foreign investors and granting new licences. The organisational structure of STE will be transformed into a private limited company, while maintaining a monopoly on infrastructure.
The Syrian data-processing company “Syrian Computer Society” (SCP), founded in 1989, is an association grouping the majority of private actors, in charge of promoting a computer culture and data-processing know-how in Syria. It acts as a consultant for public organisations for acquisition of equipment and introduction of new technologies related to data processing and telecommunications. SCS is also the second largest internet provider and the first “private” ISP in the country.
Two private operators share the mobile telephony market: Syriatel and Spacetel. They operate on the basis of a seven-year BOT (Build-Operate-Transfer) contract, but prices are set by STE. The number of subscribers for pre-paid and post-paid services reached 1.185 million at the end of 2003 and the network grew considerably in 2004, reaching 1.8 million subscribers. A third mobile licence is planned for 2008. STE and the Syrian Computer Society are the two ISPs. The Best Italia Holding Company obtained a licence for internet by satellite in January 2005.
The Syrian Ministry of Telecommunications and Technologies has set the goal of reaching a penetration rate of 20 percent (four million users) by 2013. Internet broadband was launched in 2005 but for the time being ADSL access in Syria is expensive. In 2004, only 300,000 households had a computer. To increase the computer/household ratio, the SCS launched a programme at the end of 2004 in co-operation with the Commercial Bank of Syria: “a computer for all”, allowing Syrians to buy computers on credit. |
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