October 10, 2007


The auction for the mobile licenses and the existing networks is now officially launched, marking a major milestone in the government’ plans to liberalize the country’s telecommunications sector. The two existing networks (MIC1 managed by Alfa and MIC2 managed by MTC Touch) will be privatized through a bidding process for the acquisition of their current subscribers, as well as the awarding of a 20-year license for the right to build, own and operate a network and provide mobile telecommunications services in Lebanon. more The tender process is being jointly managed by the TRA and the Higher Council for Privatization (HCP) to ensure that it is carried out in full transparency and in the interests of fair competition and in line with international best practices. For investors, the auction is offering investors a landmark opportunity to acquire a leading mobile operator in what is now a two-player market (a third entrant is expected to be licensed in 2008) and to tap the potential of Lebanon’s relatively low mobile penetration rate compared to other countries in the region. The future growth of the mobile market is expected to be supported by pent-up demand in the market, decreasing costs, the existence of an active regulator coupled with progressive government policies, and a favourable demographic mix with a young population. The tender process is being conducted in full transparency, with all relevant documentation available online. After submitting a formal expression of interest, potential bidders will be given access to an online data room containing extensive information relating to the two networks. The auction will be scheduled to take place once the successful qualifying bidders have been announced. The opening of the pre-auction bids of qualifying applicants, the announcement of a final decision on the revenue-sharing arrangement with the government and the conduction of the auctions will all take place on the same day in the spirit of transparency in a live session open to the media and an observer panel made up of prominent civil leaders. The successful completion of the privatization of the networks and liberalization of the market are expected to create broad-ranging benefits for Lebanon. The benefits to the Lebanese economy include providing a boost to the private sector through attracting foreign investment and the creation of jobs, while the public sector will benefit from increased government revenues and, as a result, a reduction in the size of public debt. Consumers also stand to benefit greatly from the liberalization of the telecommunications sector through the resulting improved service quality, lower prices, wider choice and greater protection of consumer rights. To view the full documentation relating to the mobile auction, kindly visit:Lebanon Mobile Auction Website