September 10, 2003

Afghan Wireless Makes $1.6 Million Payment to Ministry of Communications

KABUL – Afghan Wireless Communication Company (AWCC) is pleased to announce the payment of $1.64 million today to the Ministry of Communications.  This sum represents the Ministry’s share of revenues from international telephone traffic originating from countries outside Afghanistan and terminating on the AWCC network. This payment to the Ministry is one of the terms of the wireless service license awarded to Afghan Wireless in July.

“We are very pleased to be able to make this payment, according to our responsibilities under the license,” said Mr. Ehsan Bayat, Chairman of the Board of AWCC.   “This payment is an excellent example of the ways in which Afghan Wireless is meeting its many commitments to the government.  We are proud of our ability to make this payment now and to simultaneously undertake other major programs—such as the $5 credit and the purchase of new Siemens equipment—and also lower prices significantly to enable more Afghans to afford wireless services.  We are able not only to meet our commitments to the Ministry, but also provide additional value to our customers and invest in the future of Afghanistan.”

In accordance with the terms of its license, Afghan Wireless has paid more than $8 million to the Ministry this year, making Afghan Wireless one of the largest corporate contributors to the Afghan Treasury this year. 

In addition, Afghan Wireless has given back more than $400,000 to its subscribers over the last two months through its $5 credit program.  The company expects to give back a total of $1.25 million to its subscribers by the end of 2003.  AWCC has also embarked on an aggressive program to improve its coverage and service by signing a contract with Siemens, valued at over $ 16 million,This contract provides for state-of-the-art GSM network equipment and support services to the company to upgrade its existing network. Afghan Wireless is looking forward to the arrival this September of its newly purchased Siemens GSM wireless switches, which will enable Afghan Wireless to serve up to 100,000 subscribers in Kabul, Jalalabad and Parwan, in addition to its subscribers in Herat and Kandahar. Its second switch will increase capacity to Mazar-i-Sharif, and bring new services to Konduz and Baglas.