November 04, 2011

The "TRA" held a press conference earlier today at its premises in Down Town Beirut, and revealed the results of a study about telecommunications services prices in Lebanon, and particularly the prices of 3G mobile services, ADSL and international capacity. This press conference was attended by HE. Minister Nicolas Sehnaoui as well as by a delegation of directors and consultants from the Ministry of Telecommunications.

Dr. Imad Hoballah, TRA Acting Chairman and CEO, opened the conference by stressing on the crucial impact of telecommunications on the national economy, as well as on education, health and the financial sectors among others. He presented the TRA main work axes and namely the development of the regulatory framework, the vision for the sector as well issues related to the private sector, consumers and the security of communications networks. He also described the mechanisms of the close cooperation between the TRA and the Ministry of Telecommunications on several fronts and especially on issues related to tariffs and infrastructure of telecommunications services.

Mr. Patrick Eid, TRA Board Member and Head of Market and Competition Unit revealed the results of the analysis included in the study, which is divided into three sections:

Section I: prices of third generation cellular services, where Mr. Eid presented the three phases of 3G services. The first phase refers to a period of two years starting the introduction of 3G services on the market and the pricing scheme is designed on Cost plus basis. The operator/service provider in the second phase seeks to widen its subscribers database and to develop more added value services based on the fulfillment of various consumers’ needs, on the speed and on the quality of service. The pricing is based in this phase on the scheme of added value. The third phase is a futuristic stage based on the principle of “Internet of Things” where the market share of 3G services is expected to increase with the existence of smart phones connected via 3G networks.

Section II: prices of ADSL services in accordance with Decree 6297, where Mr. Eid presented the pricing scheme that was applied before the issuance of Decree 6207 - 09 September 2011, applicable as of 01 October 2011- as well as the improvements that resulted from its application such increasing download speeds by 8 times, doubling the capacity and decreasing prices by 30%. New prices were defined further to benchmarks with Arab countries where it was concluded that these new prices are competitive and lower than the average ratio speed/price applied in neighboring countries.

Section III: prices of international capacity in accordance with Decree No. 6297, where Mr. Eid presented the price decrease applied on international capacity reaching 85% on 2Mbps. Mr. Eid mentioned that the TRA hopes to further develop the Decree to include capacity exceeding 2Mbps and taking into consideration further features and upgrades. Mr. Eid presented new prices while comparing them with prices applied in Arab countries. Mr. Eid demonstrated and concluded that the new prices applied in Lebanon are competitive and below the average in these countries.

Mrs. Mahassen Ajam, TRA Board Member and Head of Information and Consumer Affairs Unit, shed lights at the end of the conference on the Authority's efforts since its inception to date to reduce the prices of telecommunications services, while building its pricing studies on scientific analysis and benchmarks with neighboring and developed countries. Mrs. Ajam explained that the draft regulations issued by the TRA focus on the protection of consumer rights while ensuring the access by the Lebanese population to a wide choice of advanced services, and on the promotion of competition that would lead to prices reduction, the improvement of the quality of service and increased choices.

To view the press release click here
To view Dr. Imad Hoballah’s speech click here
To view Mr. Patrick Eid’s presentation click here
To view Mrs. Mahassen Ajam’s speech, click here