Amidst mounting financial pressures and the ongoing economic challenges faced by Lebanon, the nation’s internet infrastructure grapples with stagnation, rendering it one of the costliest and slowest services in the region. Shedding light on the prevailing issues in the telecommunications sector, LIMS published an exclusive paper underscoring the government’s monopoly over internet services, controlled through the national company, Ogero.

Ogero’s budget for 2022, totaling 48.3 billion Lebanese Pounds (approximately $500,000 at the present exchange rate), faces significant constraints. This meager sum scarcely covers the cost of fuel for just ten days to power the company’s generator, leaving Ogero struggling to meet essential expenses, including foreign currency payments for internet procurement and maintenance. The dire situation has been further exacerbated by employees’ strikes, interrupting internet services for the entire nation.

Even before the 2019 crisis, Lebanon’s internet service was far from satisfactory. In 2018, the country ranked 160th out of 200 countries in global broadband internet speed, with a mere 1.6 Mbps, falling far below the world average of 9.1 Mbps. Tragically, Lebanon’s ranking plunged even lower to 163rd out of 181 countries by 2022. Additionally, obtaining a 25-30 Mbps service in Lebanon costs $100, accompanied by a $40 monthly subscription fee, while neighboring countries like Turkey and Georgia offer unlimited 100 Mbps service for a meager $7 per month.

LIMS advocates for crucial reforms in the telecommunications sector to improve service quality, reduce costs, and stimulate investment. The institute proposes ending the monopoly of Ogero on internet services, allowing new companies to enter the market and foster competition. Such a move would promote investments in the sector and enhance service offerings. Additionally, exploring public-private partnerships for managing Ogero, could make the company more efficient and profitable in the event of market competition.

Furthermore, LIMS released a second policy brief addressing challenges pertaining to public-private partnerships in Lebanon. The intricate mechanisms and lengthy approval procedures, compounded by the absence of a functional Higher Council for Privatization and Partnerships, create hurdles that deter potential investors. The paper advocates for simplifying and streamlining these mechanisms through legislative efforts to stimulate economic growth, improve overall performance in Lebanon, and attract investments for small and medium-sized projects to ensure their success. By enacting these reforms, Lebanon can pave the way for a revitalized telecommunications sector, offering better connectivity and greater competitiveness in the global digital landscape.

• Money And Business, June 19, 2023: NBN, TV Interview AR
• LIMS Exclusive: The Partnership Between The Public and Private Sectors Is Broken And Lacks A Legal Framework, June 20, 2023: LIMSLB, Article AR
• LIMS Exclusive: Dismantling The Ogero Monopoly Is An Introduction To Reforming The Internet and Increasing State Revenues, June 22, 2023: LIMSLB, Article AR
• Ports And Airports Are An Economic Wealth That May Pull Lebanon Out Of Its Crisis…Who Will Move? June 23, 2023: Thisislebanon, Article AR
• Internet Prices Will Be In The Millions…Temporary Solutions In Difficult Times, June 5, 2023: Lebanon 24, Article AR
• Lebanon Imported Energy Worth Two Billion Dollars. Mardini: The State Puts Obstacles In Issuing Licenses, June 24, 2023: Addiyar, Article AR