Lebanese Networks Operating Concessions Extended to June

Published on: 3rd Mar 2013

­The Lebanese government has again extended the operating concessions for the country's two mobile networks as it works on long-delayed plans to revamp the market.

The two networks, Alfa and Touch had their licenses extended until June.

The government is now preparing a new tender for the licenses, and expects to publish it within the next couple of months. Unlike the current situation where the licenses were renewed annually, the new concessions will be for a fixed term of five years.

The long term intention -- at the moment at least -- is to combine the two networks into a single government owned infrastructure, and then lease capacity to a number of MVNOs.

Attempts to privatize the two networks have been held up by political problems for the past five years and is generally considered to be unlikely to happen now due to the government's dependence on revenues from the telecoms market.

The telecoms sector generates more than $1.6 billion in revenues each year, of which US$1.4 billion goes to the government. It's high take of the revenues has however held back network upgrades and lead to complaints about poor quality of service.

The Alfa network is managed by Orascom Telecom, while Touch is managed by Zain. Both companies receive a fixed monthly management fee for operating the networks.

 

Tags: [alfa]  [zain]  [orascom telecom]  [Lebanon]