Lebanese mobile phone operator LibanCell has dropped plans to establish a mobile service in Yemen, reported the Daily Star newspaper.
Quoting the company spokesperson, the newspaper said that the reason for the pullout decision was "non-respect for contractual agreements by our partner in Yemen."
LibanCell had intended to pay $10 million for a license from the Yemeni government to operate one of two mobile phone networks there.
The license was awarded this spring.
The second license was granted to Egypt-based Orascom, which operates mobile networks or holds licenses in Egypt and Jordan, as well as 11 African countries, added the nwspaper.
According to LibanCell, the Lebanese operator complied with all the requirements of the Yemeni government throughout the process.
It withdrew from the project when the firm's local partner allegedly tried to change the terms of the joint venture agreement with the Lebanese after being awarded the license.
The Yemeni government signed contracts last week for the establishment of mobile phone networks with Orascom and Spacetel Yemen, a venture led by Oman's al-Zubair Group, said the daily - Albawaba.com
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