Telecom Minister Boutros Harb promised to consider different options to run the cellular networks in case Cabinet failed to take action on the future of the mobile firms.
“If the government fails to take action I may consider extending the contracts of the two mobile companies in case they succeeded in providing high-quality services under my direct supervision in this coming month,” he told The Daily Star in an exclusive interview.
The Telecom Ministry Thursday extended the contracts for the operators of Lebanon’s two mobile phone companies, touch and Alfa, for one month.
The operators Zain and Orascom agreed to the extension which was put into effect Jan. 1 2016, until the Cabinet settles the matter.
Harb told The Daily Star Prime Minister Tammam Salam was keen to activate Cabinet’s work but may not be able to discuss contentious issues during its first meeting.
“Even if the government convenes it may not be able to make a decision with regard to the two mobile companies, which will prompt me to extend the contracts for one additional month until Cabinet resolves the matter,” he said.
Harb said he sent a letter to Cabinet asking it to find new operators to manage the networks, upholding a decision issued by the Cabinet on April 29, 2015.
He added that in case the government decided to proceed with a new round of bidding the ministry would exert extra efforts to ensure the participation of a good number of international mobiles operators.
“We surely hope Cabinet approves on launching a new bidding round to find new operators to manage the networks,” he said. “But if it fails to do so, and the current two mobile companies do not succeed in meeting our expectations then the ministry will have to take charge of running the sector.”
Harb said the ministry would manage the sector only if all other options failed to pan out.
“We do not prefer this option very much because the management of the two mobile networks by the ministry is against law 431 issued in 2002 which calls for the privatization of the sector,” he said.
Harb said the ministry was capable of managing the sector properly and if it decided to do so it will only have to replace the current managers in the two mobile companies. “The two companies are already operating with the efforts and skills of the Lebanese telecom talents so nothing will really change,” he said.
Harb added that if the two companies remained in charge of the sector, they were expected to provide 4G services to cover all Lebanon within one year.
He added that the ministry as working in parallel on activating a fiber optics network, which would be completed in five years.
Harb said he was also planning to further reduce the prices of mobile services after the completion of the 4G project.
“I am looking forward to cutting the prices further, especially that this move impacted the sector’s revenues in a positive way,” he said.
“Our revenues increased by 20 percent since we first cut our prices,” he said, adding that the telecom sector is the government’s third major revenue generator following VAT and customs.
By Dana Halawi
