Private Telecom Projects

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Mobile services leading the way
Private activity grew or remained stable in segments
that include mobile services while declining
in the others (fixed line and long distance).
Stand-alone mobile operators, accounting for
half the 22 new projects in 2003, kept investment
flows at US$13 billion (figure 1). Most
went to network expansion by existing operators.
Integrated fixed and mobile providers, the
second most active segment, saw investment
flows grow by 13 percent, thanks mainly to the
divestiture of Saudi Telecom.


Private participation spreading
Private activity in telecommunications expanded
geographically in the past few years, with 15
countries introducing private participation in
the sector in 2001–03. In the Middle East and
North Africa four countries—Algeria, Iraq, the
Syrian Arab Republic, and Tunisia—opened the
sector to private mobile operators, while Saudi
Arabia divested its incumbent operator


After the boom of 1996–2000
Among infrastructure sectors, telecommunications
was the least affected by the decline in private
activity in the past few years, maintaining
high investment flows. Annual investment flows
averaged US$34.8 billion in 2001–03, much
higher than the US$15.8 billion in 1990–95.
During the boom of 1996–2000 annual flows
averaged US$44.4 billion.