A New Era for Telecommunications in Lebanon Dr. Kamal Shehadi - - PowerPoint PPT Presentation

Lebanese German Business Council -September 16, 2008

A New Era for Telecommunications in Lebanon

• Dr. Kamal Shehadi

Chairman & CEO Telecommunication Regulatory Authority

Click to edit Master title style

2

Table of Contents

I. The Benefits of Liberalization II. The Urgent Need for Reform III. TRA Vision and Roadmap IV. The Way Forward

Click to edit Master title style

3

The GoL, recognizing the need for reform, has committed to open the telecommunications sector to competition and has recognized it as an important lever for economic development

“… there is a need to reduce the cost of production resulting mainly from unreliable supply of electricity, the high cost of telecommunication …” “The Government of Lebanon will implement reforms in order to improve competitiveness and reduce the cost of doing business in Lebanon…” “The government will seek a greater private sector role in sectors such as telecommunications…” International Conference for Support to Lebanon” - Paris III Conference

ﺔﻣﻮﻜﺤﻠﻟ يرازﻮﻟا نﺎﻴﺒﻟا 2008 داﺆﻓ ﺲﻴﺋﺮﻟاﺔﻟود ﺔﻣﻮﻜﺣ ةرﻮﻴﻨﺴﻟا (§56)إنزاﻮﺘﻤﻟا ءﺎﻤﻧﻹا ﺰﻳﺰﻌﺗ ﻲﻓ ﻢﻬﺴﻳ ﻮهو ﻲﻨﻃﻮﻟا دﺎﺼﺘﻗﻼﻟ ﻲﺳﺎﺳأ كّﺮﺤﻣ ﻮه تﻻﺎﺼﺗﻻا عﺎﻄﻗ ن . نﺎﻨﺒﻟو

ﺔﻴﻤﻟﺎﻌﻟا تﻻﺎﺼﺗﻻا ةرﻮﺛ ﺔﺒآاﻮﻣ ﻞﺟأ ﻦﻣ ﺔﻴﺗﺎﻣﻮﻠﻌﻤﻟا ﻊﻤﺘﺠﻣ ءﺎﻨﺑ ﻰﻟإ فﺪﻬﺗ عﺎﻄﻘﻟا اﺬﻬﻟ ﺔﻳؤر ﻢﻳﺪﻘﺗ ﻰﻠﻋ ﻞﻤﻌﻳ ﺎﻬﺗدﺎﻳرو تارﺎﻤﺜﺘﺳﻻ قﻮﺴﻟا ﺢﺘﻓو تﻻﺎﺼﺗﻻا عﺎﻄﻗ ﺮﻳﺮﺤﺘﺑ قﺎﻴﺴﻟا اﺬه ﻲﻓ مﺰﺘﻠﺗ ﺔﻴﻧﺎﻨﺒﻠﻟا ﺔﻣﻮﻜﺤﻟاو ،ﺔﻘﻄﻨﻤﻟا ﻲﻓ قﻮﻘﺣ ﺔﻳﺎﻤﺣو ﺔﺴﻓﺎﻨﻤﻟاو صﺎﺨﻟا عﺎﻄﻘﻟاﻚﻠﻬﺘﺴﻤﻟا. The TRA is charged with promoting competition in telecommunications (Telecommunications Law, Art. 5.1(C)). The Law provided for the liberalization of the telecommunications market by privatizing state-owned telecommunications entities and opening the market to private sector investments and competition.

Telecommunications Law 431 / 2002

GoL Governmental Declarations in 2005 and 2008 commit the CoM to the liberalization of telecommunications

Click to edit Master title style

4

The Telecommunications Law 431 requires the creation of a proper structure for a competitive telecommunications market Regulator Operators

MoT: policymaker, regulator and service provider CoM: Arbitrary regulatory role (e.g. issuing all licenses) No formal regulatory regime

Before Telecom Law 431 After Telecom Law 431

Ministry of Telecommunications MoT Policymaker

• Set the general guidelines for

telecom policy

• Recommend to CoM the award of

some broadband licenses ( Mobile, int’ll voice & fixed)

• Review and propose to CoM the

pricing of Radio Frequency

• Approve TRA budget & other

TRA documents as per Law 431

TRA Regulator Draft and implement regulations Award telecom licenses Ensure competition and prevent anti-competitive behavior Manage on behalf of GoL radio frequencies Operators Incumbents & New Entrants Provide telecom services to the public Install own and manage telecom networks and facilities Abide by TRA regulations, decisions and licenses

Policymaker

2 1

3

Click to edit Master title style

5

There is a wide range of benefits stemming from Liberalization

Increase service penetration Increase customer choice Improve price to quality ratio Introduce new technologies and services Reach underserved areas Keep up with technological advances Introduce good governance and management Ensure more effective infrastructure Improve sector productivity Improve financial performance Increase overall telecom revenues Attract private and foreign capital Improve connectivity and penetration of ICT Generate revenues from privatization Generate revenues from licenses Spur job creation throughout the economy Join international trade organizations (e.g. WTO) Join the global trading system (e.g. EU association) Catalyze growth of information economy Improve global competitiveness of the economy Improve general economic performance

Benefits the Customer Benefits the Telecommunications Industry Benefits the Economy

Click to edit Master title style

6

Liberalization has led to higher penetration of mobile services and lower prices in India…

0.44

5 10 15 20 25 30 35 40 45 50 2 4 6 8 10 12 14 16

Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04

Mobile subscriber base (in Million) Effective charge (in Rupee. per min.) Cellular Mobile Growth and effective charge per minute

Fixed Mobile Cellular WLL(M) Mobile Subscriber base

NTP '99 Telecom Tariff Order 3rd & 4th cellular

• perator

WLL introduced CPP introduced Lowering of ADC from 30% to 10% of sector revenue Sep-04 43 Jun-04

Source: OECD Communications Outlook 2005

Click to edit Master title style

7

…and Jordan

In Jordan, a country with comparable population and size but much lower per capita income, liberalization and licensing of new mobile operators met with jumps in mobile penetration. Real benefits were realized after the introduction of the third and fourth mobile operators

10 20 30 40 50 60 70 Penetration Rate Year 20 40 60 80 100 120 y-3 y-2 y-1 y 0 y+1 y+2 Batelco STC Fastlink Qtel

Prices start decreasing prior to competition in a move to prepare for the entry of a new operator. As a result of competition prices tend to continue decreasing after liberalization unless capped by the regulator Evolution of Lowest Mobile Peak Minute Rate Evolution of Mobile Penetration In Jordan

1

Fastlink Mobilecom Xpress Umniah

Year competition introduced in concerned markets, 2004 for Qtel

2

Sources: Tarifica, Operators, Booz Allen and Hamilton, Global Investment House, World Bank

Click to edit Master title style

8

International experience shows that countries with a liberalized telecommunications sector have proven to be more technologically advanced, offering more choices and better access to their customers

The map shows networks commercially launched as of May 2007. For some countries where more than one technology has been commercially deployed, the most advanced technology is represented. 2G = Second-generation wireless telephone technology CDMA2000 1x = Code Division Multiple Access CDMA2000 1x EV-DO = Code Division Multiple Access Evolution- Data Optimized WCDMA = Wideband Code Division Multiple Access HSDPA= High-Speed Downlink Packet Access Source: ITU, based on data adapted from 3Gtoday

Click to edit Master title style

9

In Bahrain, liberalization has resulted in providing the consumer with a wide choice of services

Operator Name National Fixed Internati

• nal C

alls Mobile Internet Leased Line Other data services 2 Connect

• Anis
• Batelco
• BT Solutions Ltd.
• Business Communications Networks
• Etisalcom
• Fakhro IT Services
• Fastelco (TeleGulf)
• Kalaam Telecom
• Light Speed
• Mena Telecom
• Northstar
• Nuetel Communications
• Orbit
• Viacloud
• Zain (Bahrain)
• Total

7 15 2 10 6 6

Click to edit Master title style

10

Liberalization also led to improved telco performance…

Enterprise employment growth +1.2% Sales growth +3.4% Profitability +5.1% Investment rate +2.5% Re-Investment rate +6.0% Total factor productivity +1.0% Effect of Liberalization on the Telecommunications Industry Worldwide, Telecom liberalization has positively impacted sector performance and the penetration of key

• services. A 2006 World Bank study demonstrates how greater ICT use in enterprises results in an

improvement of performance

Sources: Petrazzini, World Bank

Click to edit Master title style

11

… and improved productivity of firms in different sectors

20 40 60 80 100 120 140 20 40 60 80 100 Labour (Hourly) Productivity % of workers with access to broadband Services ( 10 EU countries)

Source: EU 6th framework program EUKLEMS 2008

20 40 60 80 100 120 140 20 40 60 80 100 Labour (Hourly) Productivity % of workers with access to broadband Manufacturing ( 10 EU countries)

Click to edit Master title style

12

Liberalization has also contributed to the growth of telecom revenues as share of GDP 1 2 3 4 5 6 1995 1998 2000 2002 2004

Africa Asia Oceania Americas Europe World

Source: ITU World Telecommunication/ ICT Indicators Database

200 400 600 800 1000 1200 1400 1600 1994 1996 1998 2000 2002 2004 2006 517 1,472 Telecom Service Revenue as a % of GDP Telecom Service Revenues in US $ Billion

Click to edit Master title style

13

Liberalization has attracted sizeable Foreign Direct Investment (FDI) and has contributed to GDP growth in Pakistan

Source: PTA

0.5 1 1.5 2 2001‐02 2002‐03 2003‐04 2004‐05 2005‐06

Telecom Revenue as % of GDP

485 798 949 1,524 3,521 6 14 207 494 1,905

1 2 22 32 54

10 20 30 40 50 60 500 1000 1500 2000 2500 3000 3500 4000 2001‐02 2002‐03 2003‐04 2004‐05 2005‐06

Total FDI FDI in Telecom Telecom Share (%) Total FDI in Telecom Sector ( $ US Million) Telecom Revenue as a % of GDP

Click to edit Master title style

14

A strong growth in mobile penetration in a fully competitive market will contribute in increasing the GDP per capita by 10.9% in 2012

10% increase in mobile penetration in developing countries leads to a 1.2% increase in GDP

Sources: BAH, TRA analysis and GSMA, Global Mobile Tax review 2006-2007

4.15% 3.75% 1.87% 0.73% 0.49% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 2008 2009 2010 2011 2012 GDP Growth Mobile contribution to GDP growth 9.15% 8.75% 6.87% 5.73% 5.49%

Assuming : a normal GDP growth of 5% and a mobile penetration reaching 73% in 2012 the GDP per Capita will then reach US$ 9,0.38representing an increase of 10.9% in GDP

Click to edit Master title style

15

Liberalization has also increased employment in the telecommunications sector

199 199 2 199 3 199 4 199 1 90 120 110 100 Competitive Markets Monopoly Markets Employment (normalized) Index 1990 = 100 A comparative analysis of 26 countries in Asia and Latin America between 1990 and 1994 shows that employment in competitive markets increased by 20.73% while employment in other markets grew by only 3.13% Effect of Liberalization on Employment

Sources: Petrazzini, World Bank

500 1000 1500 2000 2500 2003 2007 Q2 28 % growth since 2003

Effect of Liberalization on employment in Bahrain

Sources: TRA Bahrain

Click to edit Master title style

16

The effective utilization of broadband has a significant effect on productivity growth of businesses and governments

• Improved business productivity: Businesses with an internet connection

faster than 2mbps have productivity that was 4% higher than those with lower speeds

Sources: Broadband Stakeholder Group (UK); New Zealand National Broadband Strategy, the Scottish Executive

Business Productivity GDP Growth

• Increase in 20% broadband penetration led to a 0.6% increase in GDP: A

jump to 70% - 90% household broadband penetration in the 15 EU countries will bring about 1% to 1.6 % increase in GDP

• Broadband take up in New Zealand is expected to increase the GDP by 10%

in 8 years

• Several countries have seen increased creation between 1% and 3% of the

current workforce as a result of broadband rollout

Job Creation

Click to edit Master title style

17

Table of Contents

I. The Benefits of Liberalization II. The Urgent Need for Reform III. TRA Vision and Roadmap IV. The Way Forward

Click to edit Master title style

18

The Lebanese market for fixed and mobile services has been stagnant and the data and internet services have been constrained

• 18

Fixed Mobile Broadband

1 2 3

Strengths Weaknesses

Relatively good copper infrastructure Regionally competitive price per minute No competition No incentive to upgrade the infrastructure and introduce new technologies Low penetration rate Stagnant growth Pent up demand for mobile services High mobile revenues per user No competition Lag behind in terms of new technologies (e.g. MMS, EDGE) High connection and subscription charges High per minute prices / Per minute pricing Limited choice in mobile packages, Bad QoS Saturated mobile network /no upgrade Low Penetration Relatively competitive Lucrative segment New wireless technologies deployed Pent-up demand for data and internet services No ADSL services launched yet Access is hindered by incumbent operator Until recently, high international bandwidth prices Uncertainty over regulatory framework

International Access

4 Future expansion Plans ( I-ME-WE) No competition No transparent allocation spectrum Limited capacity High prices for retail

Click to edit Master title style

19

Penetration of telecommunications service in Lebanon between 2000 and 2007 has increased very slowly

Source: Globalcomms, operator data, ITU, Arab Advisors Group

0% 5% 10% 15% 20% 25% 30% 35% 2000 2001 2002 2003 2004 2005 2006 2007 Fixed line penetration Mobile penetration Broadband penetration Internet penetration

Click to edit Master title style

20

The telecommunications market is still underdeveloped when compared to

• ther countries

Bahrain Jordan Morocco Tunisia United Arab Emirates Egypt Algeria Venezuela Romania Chile South Africa Poland Bulgaria Slovakia Hungary Singapore Ireland Italy Libya LEBANON

y = 0.3441Ln(x) - 2.1968 R2 = 0.6852 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200% 10,000 20,000 30,000 40,000 50,000 60,000

LEBANON Libya Italy Czech Republic Ireland Singapore Hungary Slovakia Bulgaria Poland South Africa Chile Romania Venezuela Saudi Arabia Algeria Egypt United Arab Emirates Tunisia Morocco Jordan Bahrain Russia Qatar Kuw ait

y = 0.2162Ln(x) - 1.1851 R2 = 0.7209 0% 20% 40% 60% 80% 100% 120% 140% 10,000 20,000 30,000 40,000 50,000 60,000

Libya US Germany Spain UK Italy France Egypt UAE Qatar KSA Bahrain LEBANON Jordan Venezuela Saudi Arabia Peru Egypt Algeria

y = 0.1165Ln(x) - 0.689 R2 = 0.483 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10,000 20,000 30,000 40,000 50,000

Fixed Line Penetration vs. GDP per Capita (2005)

PSTN Penetration GDP per Capita (USD/ Year) Mobile Penetration Internet Penetration

Mobile Penetration vs. GDP per Capita (2005) Internet Penetration vs. GDP per Capita (2005)

GDP per Capita (USD/ Year) GDP per Capita (USD/ Year)

Sources: Economist Intelligence Unit, interviews with industry

Click to edit Master title style

21

The cost of a mobile postpaid minute in Lebanon is among the highest in the region due to the lack of competition and the legacy of a high excise tax

13 13 8 8 8 7 6 6 4

MTC touch Alfa Etisalat STC MobileCom Fastlink Batelco Mobinil Umniah

38 36 17 14 12 8 8 8 7

MTC Touch Alfa STC Fastlink Batelco Umniah MobileCom Etisalat Mobinil

60% higher than the lowest regional rate More than double the lowest regional rate

Mobile Postpaid Peak On-net Minute Rates (2006) (US$ cents per peak minute) Mobile Prepaid Peak On-net Minute Rates (2006) (US$ per peak minute)

Note: All Rates corresponds to the lowest first minute rate

Click to edit Master title style

22

A typical internet user in Lebanon will spend eight times more than in similar countries due to low download ceilings

Source: Operators Websites

$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 Lebanon (IDM) Egypt (Nile OnLine) UAE (Du) Jordan (Orange) Lithuania (Zebra)

Monthly charge to use 15 GB/month (500MB/day) using 1Mbps ADSL connection

Click to edit Master title style

23

The penetration of DSL services in Lebanon is the lowest in the Region, due in part to the late start

2 4 6 8 10 12 Lebanon Tunisia Morocco Kuwait KSA Qatar UAE 1 2 2 3 4 6 11

Comparison of DSL penetration (% of population) with the Arab Countries in 2008

Source: Operators Websites

Click to edit Master title style

24

Lebanon should have much higher broadband connectivity given its GDP per capita

0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 3,000 4,000 5,000 6,000 7,000 8,000 9,000

Colombia Dominican Republic Thailand Grenada Tunisia Iran Belize China St Vincent et Grenadine Dominica Venezuela Algeria Vietnam Georgia Jamaica Morocco Maldives Peru Fiji Cape Verde Jordan Philippines Egypt

Lebanon

Source: UN E-Government Readiness Survey, 2008

Broadband Penetration (subscribers per 100 inhabitants) 2007 GDP per capita (US$, 2007)

Click to edit Master title style

25

Only a limited range of applications and services is offered in Lebanon

Estimation of bandwidth requirements for the UK households:

• By 2008, demand for the most bandwidth intensive households could reach 18 Mbps

downstream and 3 Mbps upstream

• By 2012, the bandwidth demand for the most intensive bandwidth households could reach 23

Mbps downstream and 14 Mbps upstream

Source: New Zealand National Broadband Strategy , Broadband Stakeholder Group UK Teleconference Online games MP3 streaming Video Conference Multiplayers game Video Streaming Video on Demand Multi‐Channel TV Quality Video Streaming 5 second CD download Web Surfing Virtual Reality VOIP Telepresence Email 0.01 0.1 1 10 100

Indicative Application Bandwidth Demand (Mbps)

Current Limit on Residential Broadband

Click to edit Master title style

26

The delay in implementation of Law 431 and the establishment of the TRA explain the lack of competition in the market

20 40 60 80 100 120 140 160 1990 1995 1998 2000 2002 2004 2007 14 43 86 106 124 137 148

Regulatory Agencies Worldwide (Cumulative)

Click to edit Master title style

27

Table of Contents

I. The Benefits of Liberalization II. The Urgent Need for Reform III. TRA Vision and Roadmap IV. The Way Forward

Click to edit Master title style

28

As a first step in assuming its duties as per Law 431, the TRA has defined its mission statement and objectives Mission Statement

To establish a regulatory environment that enables a competitive telecommunications market to deliver state-of-the-art services at affordable prices to the broadest spectrum of the Lebanese population

دﺎﺠﻳإ ﺔﺌﻴﺑ ﺔﻤِﻈﻨُﻣ ﻦﻣ ﺎﻬﻧﺄﺷ نأ ﺪﻋﺎﺴﺗ قﻮﺳ تﻻﺎﺼﺗﻻا ﻲﻓ ﻢﻳﺪﻘﺗ ﺮﺧﺁ ﺎﻣ ﺖﻠﺻﻮﺗ ﻪﻴﻟإ ﺎﻴﺟﻮﻟﻮﻨﻜﺘﻟا ﻲﻓ لﺎﺠﻣ تﺎﻣﺪﺧ تﻻﺎﺼﺗﻻا رﺎﻌﺳﺄﺑ ،ﺔﻴﺴﻓﺎﻨﺗ ،ﺔﻟﻮﻘﻌﻣو ﻰﻠﻋو ﻊﺳوأ قﺎﻄﻧ ﻦﻜﻤﻣ ﻦﻃاﻮﻤﻠﻟ ﻲﻧﺎﻨﺒﻠﻟا تﺎآﺮﺸﻠﻟو ﺔﻴﻧﺎﻨﺒﻠﻟا. TRA Prerogatives ( Non-exhaustive list) Issue regulations and draft Decrees (Art 5) Liberalize the market and take any necessary measure to reach a competitive market (Art 30) Manage Radio Frequency, Interconnection agreements, numbers, equipment import, etc.. (Art 29) License telecommunications service providers and radio frequency bands (Art 20) Resolve disputes between service providers (Art 43)

Click to edit Master title style

29

The TRA's draft Liberalization Roadmap proposes introducing competition across all telecommunications markets while allowing LibanTelecom some exclusivity over some services for a limited period of time

2008 2009 2010 2011 2012

Mobile Network Operator Virtual Network MNVOs PSTN/ Basic Telephony Network Operator Reseller Broadband Access National International Access Facilities Service Provider Reseller

3 1

***

5+

** * Liban Telecom expected ** TRA is still considering the appropriate number of NBLs to issue *** Two for the mobile licenses, one for Liban Telecom and two others for the NBLs for data traffic only

License Award Open licensing Market Review

Notes

*

Click to edit Master title style

30

TRA's objective is for Lebanon to become a global leader in broadband communications within 10 years

What is Broadband? Broadband refers to a wide range of technologies supporting the delivery of innovative interactive services, equipped with an always-on functionality, providing enough local bandwidth and capacity allowing the simultaneous use of both voice, video and data services Residential Services in 2013 Business Services in 2013

For around US$40/month and up to 10Mbps speed triple play services: 1. High speed Internet – surfing and data transfer 2. Digital Entertainment – video 3. Voice Communications – voice For around US$ 600/month and up to 1Gbps speed triple play services: 1. High speed Internet and data transfer 2. Digital Entertainment – video and teleconferencing 3. Voice Communications – voice

Click to edit Master title style

31

Lebanon has to improve its telecommunications infrastructure and open it to competition

Fixed MoT Infrastructure: currently the only provider of national internet

and data transmission, however needs major upgrade of national and international capacity.

National Broadband Licenses: Provide a best in class alternative

national networks (core, metropolitan and access), enabling the national transmission and provision of high speed communication

Broadband Access Licenses: Unleash competition on the access level

and provide more choice to consumers ( e.g. incumbent data service providers) The TRA plans to issue licenses (through an international public auction) in order to establish across Lebanon best in class core, metropolitan and access networks : 1. Two new NBLs (alongside LibanTelecom) 2. Unrestricted number of Broadband Access Licenses (for existing DSP and new licenses) taking into account limitations in the availability of spectrum resource

Therefore Competition

Click to edit Master title style

32

Illustrative Sketches of the Core / Metropolitan and Access Networks The TRA plans to launch National Broadband Licenses and Broadband Access Licenses in Q4 2008

Beirut Core

TRA has already issued interim license for Incumbent DSPs. TRA has started spectrum refarming exercise which is intended to to free up some of the spectrum currently used by DSPs and other operators and make it available to new entrants as well as incumbents in a manner that allows optimal use of spectrum.

Liban Telecom National Broadband Licenses Some Broadband Access Licenses

Access Ras Beirut

Liban Telecom National Broadband Licenses Broadband Access Licenses

User1 User1 User1 Ras Beirut Mazraa Ras Beirut Achrafieh Sin El Fil

Metropolitan

Tripoli Bekaa Saida

Lebanon

Liban Telecom National Broadband Licenses

Beirut

Click to edit Master title style

33

The Mobile Auction was suspended in January 2008, but could be held within 8 weeks from a GoL decision

Most of the preparatory work for the auction has been completed: Executed an MOU with the Higher Council for Privatization (HCP) to ensure smooth privatization and licensing Launched the Tender Process for privatization and licensing of mobile in November 2007:

• Finalized the Financial Model for the license valuation
• Developed the Online Data Room and answered questions submitted by bidders
• Prepared financial, legal and technical due diligences and conducted site visits
• Finalized the RFA
• Drafted the Mobile License
• Prepared the draft Sale and Purchase Agreement ( SPA)

Mobile Auction Launch: RFA published

January 2008 Licensing Process Freeze November 2007 To+ 2 (Mths)

GoL Decision to Re launch Process Auction – Announcing two winning bidders

To To+ 5 (Mths)

Handover completed Crucial phase that should be completed smoothly and in the specified time Technical & Pre-Auction Financial Bids Due

To+ 3 (Mths)

Click to edit Master title style

34

The licensing of the two mobile operations and the opening of the mobile market to competition aims at ensuring lower retail prices, quality of service improvements as well as the provision of advanced services

Scope of Mobile Licenses: Provision of any service over the licensed frequencies, including 3G mobile broadband services. Installation, ownership and operation of a facilities‐based international gateway. Provision of all international services to their own end users. Obligations: Geographic roll‐out and coverage obligations Certain payment obligations: License fees Spectrum fees Numbering Fees Provision of mobile number portability to their customers to ensure a fair consumer choice. Provision of national roaming to the third entrant to allow a faster development of competition.

Rights and Obligations of Mobile Licensees TRA will undertake periodic market reviews to analyze the state of competition and the need to introduce new facilities‐based operators or services‐based resellers

Click to edit Master title style

35

Telecom Law 431 also calls for additional structural reforms MoT

Directorate General of Construction and Equipment Directorate General of Post Directorate of General Control Directorate of Common Administrative Directorate of Operation and Maintenance

MoT

Directorate General of Posts Directorate General of Telecommunications Joint Administrative Division Division of Central Control Current Structure Mandated Structure Under the Telecom Law

Restructuring of MoT – NOT YET STARTED The TRA views the creation and privatization of Liban Telecom as a major step in the history of the telecommunications sector and a central component of future growth

MoT LT

Click to edit Master title style

36

The regulations needed to ensure the success of liberalization have been put in place

Spectrum Management and Licensing Regulation Administering and Implementing the NNP

Drafting Stage Draft Ready Stage Consultation Stage Final Review (TRA Board) Issued

Type Approval Regulation Accounting Separation Regulation Spectrum Pricing Opinion Consumer Affairs Regulation Significant Market Power Regulation Unbundling Regulation Broadband Policy Statement Lebanese National Frequency Table National Numbering Plan Liberalization Roadmap Licensing Regulation Interconnection Regulation Decisions:

• VSAT,
• Trial IPTV
• Spectrum trial

Allocation for MoT / OGERO VOIP Policy Statement Pricing Regulation National Roaming Interconnection Interim Pricing Decision Spectrum Refarming Guidelines Quality of Service Regulation Regulatory Framework for establishment of call centers

Click to edit Master title style

37

Table of Contents

I. The Benefits of Liberalization II. The Urgent Need for Reform III. TRA Vision and Roadmap IV. The Way Forward

Click to edit Master title style

38

Our Commitment

The TRA is committed to bringing the country back to the international telecommunications scene through a successful market liberalization The TRA is committed to building a thriving, innovative, and competitive telecommunications market which includes the most technologically-advanced networks and provides services at internationally competitive prices and quality The TRA is committed to promoting the interests of Lebanese consumers in the market to make sure they are getting good quality of service at affordable and competitive prices and that their right to safe, secure and confidential access to telecommunications is safeguarded