World Dialogue on Regulation

Qordahi also said that by early 2005 the government would review plans to reduce fixed line tariffs and introduce high speed internet service.

"Unfortunately the previous council of ministers did not take such decisions. Now, the new government is re-launching all the issues of telecom that were withheld by the previous government," he said.

The state's telecommunications monopoly has been a major reason for high tariffs, which have slowed local business growth and sparked a number of day-long mobile boycotts. Political disputes had prevented implementation of the 2002 Telecommunications Act, which set out to liberalise the sector and help finance Lebanon’s national debt.

Qordahi argued that competition and new investment would expand the country’s telecommunications sector and end the government's dependence on the sector for revenues – amounting to over US$ 1.2 billion in the last two years from mobile calls alone. There are approximately one million mobile subscribers in Lebanon, but that number could jump to two million next year with liberalisation.

"It is no longer our goal, and it shouldn't be our goal to increase government revenues from the (telecom) sector. We have to stop increasing government revenue out of the sector and look at how to increase the volume of the sector." Qordahi said.

In the last two weeks, cabinet agreed to create a telecommunications regulatory authority and decided to launch a tender to complete the country's existing public data network. Qordahi said he hoped the tender would launch in January 2005 and said it would result in the introduction of DSL service.

"Prices will go down for the mobile and fixed telephony," he said, with some tariff reduction proposals by the end of 2004. He also said data service tariffs could be reduced by as much as 50%.

Intelecon Research & Consultancy Ltd. 09/12/2004
Source: The Daily Star