Previously disqualified firm Orascom gets judicial nod days before winner is named
- Orascom missed submissions deadline by full hour and lodged an appeal
- New firms to manage networks urgently required with existing contracts expiring by end of this year
A new round of bid for the licence to operate Lebanons cellular networks is likely to be conducted following a decision by the Lebanons Shura Council to allow a previously disqualified bidder, Cairo-based Orascom, to participate in the bid.
The decision by the Shura Council, one of the countrys leading judicial authorities, came on 6 October, three days prior to the scheduled announcement of winners by the Prime Ministers Tender Office, according to local media reports.
This development is understood to pose a major setback to the telecom ministers efforts to appoint new companies to manage Lebanons mobile networks as soon as possible.
The pretext for Orascoms disqualification lies on its apparent failure to submit its offer on the scheduled deadline of 4:00pm on 31 July by a full hour. As a result of its disqualification by the Tender Office, the firm filed a complaint with the Shura Council, which upheld its bid. Orascom currently runs Iraqs Alfa mobile network.
It is understood that Telecom Minister Boutros Harb announced six companies that were selected to take part in the bidding process back in August. The prequalified companies comprise Kuwaits Zain, which is currently managing Touch, one of the countrys mobile networks, UKs Vodafone, Frances Orange, Malaysias Maxis, Turkeys Turkcell and Germanys Detecon.
Citing unnamed sources, local media reported that only two of the six prequalified firms, namely Orange and Zain, submitted an offer and the local regulatory framework is understood to prescribe that at least three companies should vie for a mobile licence.
Touch and Alfa are understood to have 4 million mobile subscribers between them. The governments contracts with Alfa and Touch are to expire by end 2015.
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