Turkcell's Internet unit Superonline and Middle East telecoms partners will spend 1 billion lira ($657 million) on a fibre optic cable network to develop Gulf services by connecting them via Turkey.

Superonline said it had formed a consortium with seven telecoms companies from Syria, Jordan, United Arab Emirates and Saudi Arabia including Etisalat, Mobily, the Telecom/Orange Jordan and Mada-Zain partnership and Syria Telecommunication Establishment.

The Regional Cable Network project is planned to cover the entire Gulf region and will start operating in the second half of 2011.

'This huge infrastructure project is going to connect the Middle East to the world through Turkey,' Turkcell CEO Sureyya Ciliv said.

Shares in Turkcell traded up 1.49 per cent to 10.25 lira, outperfoming the Istanbul stock exchange which lost 0.16 per cent. – Reuters