Frontrunners in the tender competition to install the KAFOS telecommunications system in the Black Sea are the US' AT&T and the UK's STC, say industry sources. The contract is valued at about $50 million.

A decision is expected on the final award by December. The project is the second of two major telecommunications projects planned as part of moves for the Black Sea Economic (BSEC) zone. It calls for the laying of a fibre optic network about 500 kilometres in length between Mangalia in Romania, Varna in Bulgaria, and Istanbul. It will provide a total of 16,000 lines. Financing will come from countries involved in the project.

A contract valued at $125 million was awarded in July for the Italy-Turkey- Ukraine-Russia project to a group including Alcatel, AT&T and Italy's Maristel (MEED 12:8:94)