French telecoms group Alcatel has signed a deal to expand Libya's mobile phone network to cover the costal area south east of the capital Tripoli.

The agreement was signed by the General Posts and Telecommunications Company (GPTC) and involves the installation of a mobile phone network around Sirte.

Alcatel confirmed the deal was signed to BBC News Online, but would not reveal its value.

The GPTC said Libyans would help build the network to build up their expertise in telecoms and modern computer technology.

Libya launched its first mobile phone service at the end of 1997 with the help of Ericsson, providing a limited service around the capital through GPTC's wholly-owned subsidiary, El Madar Telephone Company.

Local media reports said the Alcatel deal would provide 100,000 new connections.

An Alcatel representative said in a statement the company wanted to expand further in Libya.

'Rogue' contractor?

Alcatel has a well established business relationship with Libya.

In 1999 it built a optic fibre network along Libya's coastline in a contract worth $70m which connected the country's telecoms infrastructure to Tunisia.

Alcatel has also been involved in Libya's attempts to build and launch a communications satellite.

The company has previously been criticised by the US for helping "rogue" states, especially after it won contracts to rebuild some of Iraq's civilian telecoms network.

In 2001 the United States government reluctantly approved Iraq's purchase of nearly $75m worth of telecommunications equipment from Alcatel.