"No dividend will be paid out until such a time when the matter is resolved. But I'm optimistic that the Zambian government that owns 25 percent stake in the company will help ensure that the company's operations are not affected," said Paulsen at a media briefing last week.

Paulsen said Zamtel will this year establish more than 500 base stations to cover about 80 percent of the country with its mobile network. He said the company would undertake an aggressive expansion strategy despite being linked to Gadhafi's regime through LAP Green.

Zamtel, Paulsen said, has already signed an agreement with the Chinese ZTE to roll out the base stations.

Zambian President Rupiah Banda, however, said the Zambian government only has money enough to run the company for one year through its 25 percent share. Banda said the Zambian government had no choice but to implement the decision by the international community to freeze all assets and investments belonging to Libya.

"We don't know what will happen after that one year but we can only hope that the problem in Libya will have been sorted out and Zamtel continues operating," said Banda at a press briefing.