Lebanese compromise over mobile sale

The Lebanese government is postponing telecoms sales

The Lebanese government has agreed to postpone the sale of the country's two mobile phone companies, marking a compromise between the president and the prime minister.

The two operators, Cellis and Libancell, had their 10-year licences cut by three years in June 2001, because they exceeded the limit on the number of phone lines stipulated in their contract.

The Lebanese government had originally planned to sell the companies by the end of August 2002, and raise funds to relieve some of the country's debt.

But a disagreement arose between President Emile Lahoud - who wanted the companies sold off as soon as their contracts expired - and the Prime Minister Rafik Hariri, who wanted the companies to continue operating but give profits to the state.

Compromise

The government has now agreed to put off the sale for six months, allowing the companies to operate until January 2003, when they will be auctioned off.

During this time, their revenues will go to the state while the companies will receive a fixed fee, yet to be agreed.

The government wants to use revenue from selling the telecoms groups to pay down some of its $28.8bn (£17.9bn) of debt.

This was accrued rebuilding the country following its civil war in 1975-90.