The waiting list for fixed line stands at around two million people. There is also pent-up demand for Internet access. As a result of this demand, work has started on laying fibre optic cable and increasing broadband access, Salem said.

"The government is working on solving problems that have accumulated throughout decades because of bureaucracy, including telecoms. There are parts of the county without any service at all," Salem said.

The Ministry operates Syria’s only fixed-line network and regulates the two private mobile operators, Syriatel and Areeba. The Minister said a new commerce law would make it easier for businesses to invest in telecommunications. In addition, an independent regulatory body will be set up in the coming months to regulate the sector.

President Bashar al-Assad has taken several steps to open the economy to investment after its main sectors where nationalised in the 1960s. However, the government does not plan to sell state assets or abandon the role it plays in the economy.

By the end of 2007, Salem said broadband capacity would increase from 10,000 subscribers to one million after the US$ 200 million project is finished. Dial-up users, currently at 350,000, will also receive better service. There are currently two million land lines in Syria, far fewer than the country of 18 million people needs. Expanding the network would require an investment of around US$ 1 billion.

Syriatel and Areeba have around two million mobile subscribers between them and have recently commenced a project to provide 3G service in Damascus and the northern business centre of Aleppo. Salem expects Syria's mobile subscribers to increase to 5 million by the end of 2007 as coverage expands, especially to rural areas, and pre-paid cards are introduced.

Source: Reuters - WDR/Intelecon Regulatory News