200,000 Subscribers by 2019 and a 3-time Expansion of the Lebanese Market

Mr. Patrick Eid, board member and head of the Market and Competition Unit at TRA, confirms that launching broadband services in Lebanon will bring about significant economic and social benefits.

Mr. Eid’s opinion is based on a study prepared by Cisco Systems Inc., which concludes that at least 200,000 people are expected to subscribe to broadband services by 2017 (10 to 15 times the current number of subscriptions). If such numbers are reached, the Lebanese market will be on par with both those in the USA and Europe.

The above study shows that with the launch of broadband services the market will have the potential to double or triple in size. This will be made possible if the government realizes its interest in the development of broadband services, and in doing so, works to connect administrations, government ministries, public schools and hospitals. Lebanese citizens as well as businesses stand to benefit immensely from the implementation of this service, and the facilitation of day-to-day transactions that comes with it.

Q: What are Lebanon’s broadband requirements, and what networks are considered necessary to provide for this?

A: The data exchange and internet market needs a comprehensive upgrade through further investment, and the deployment of essential services such as broadband capability. The promotion of fair and transparent competition in the broadband market, and the development of core / regional , as well as access networks are vital to provide efficient and reliable high speed data services.

Q: With that in mind, what is the importance of the conditions developed by the TRA for new building requirements and the use of public properties?

A: This will improve broadband deployment and encourage the entry of new investors into the market. The regulation of use of public properties will promote investments in infrastructure and speed up the deployment of these services, in addition to securing additional revenues for public administrations.

Q: How will the TRA help or contribute to these efforts?

A: The TRA is preparing a comprehensive plan for the deployment and development of broadband services in Lebanon, including:

• Issuing Licenses for the granting of two new national broadband networks in addition to the ‘Liban Telecommunications network’ - so as to promote healthy competition.
• Fostering competition in the of broadband access market - this of course depends on the physical availability of Radio Access frequencies.

Q: You mentioned broadband networks; can you specify the nature of these networks?

A: The plan covers 3 main types of broadband networks as follows:

1. The Core Network across Lebanon, which will be used to connect main cities such as Tripoli, Zahleh, Saida and Sour.
2. The Regional Network, which for example, will be used to connect Ras Beirut area with Ashrafieh, Mazraa, Sin El Fil areas,.M/li>
3. The Access Network, which works as a concentration of subscribers in a defined POP / exchange. For example, this may be used to connect multiple subscribers to the Ras Beirut exchange.

Q: When the TRA calls for allowing investors to use public properties, what is this based on?

A: This is based on the Telecommunications Law 431/2002, Article 35. It provides the framework for using public properties by service providers, and commissions the TRA to prepare a draft decree to be submitted to the Council of Ministers through the Minister of Telecommunications, for Approval.

Q: What does Article 35 stipulate?

A: Article 35 gives licensed Telecommunications service providers the right to “enter any public property, including streets, pavements, drainage systems, and railway tracks, for the construction and maintenance of Telecommunications Services infrastructure in, along, above or under such public properties. Whenever necessary, the licensed service providers may, with the approval of the relevant government department, alter the appearance and specifications of such public property in order to be able to provide their Telecommunications Services, provided that such alteration does not obstruct the use of the property for its intended purpose.”

According to the law, the service provider “must obtain the approval of the relevant government department before entering any public property, carrying out certain works, or erecting any installations. In the event it is not possible to obtain such approval on acceptable terms and conditions for any reason whatsoever within one month of the filing of the request for approval, the Service Provider shall submit a written request to the TRA, within another period of one month, to intervene with the government department concerned. In the event of any disagreement between the TRA and the government department concerned, the matter shall be raised before the Council of Ministers for making an adequate final decision.”

The law also stipulates that “Conditions for the use of public properties, procedures for request for such use, and the basis for the allocation of charges, compensations and fees shall be established by a decree issued by the Council of Ministers, upon the proposal of the Minister, based on a study prepared by the TRA and on the opinion of the relevant governmental authority.”

Q: What efforts are currently made by the TRA in order to perform the tasks entrusted to it under law?

A: The TRA, supported by technical and legal experts, prepared a draft decree including the charges and fees to be paid to enter public properties, relying on the studies and regulations applied by developed countries on the one hand, and on meetings held with public administrations and stakeholders from the private sector, on the other hand.

The meetings were held with the Ministry of Works and Transport, the Ministry of Power and Water, the Ministry of the Interior and Municipalities, Electricité Du Liban, the Beirut and Mount Lebanon Water Establishments, and the Council for Development and Reconstruction. In addition, direct communication with the Order of Engineers, who were very responsive, expressed their intention to speed up the introduction of amendments, and to recommend engineering offices to take the new specifications into consideration even before the amendment of the law. In this respect, we expect to reach a swift agreement with the Order of Engineers.

The TRA also reviewed studies made by a number of developed countries concerning relevant fees and charges. The draft decree included the following points:

• Fees of access to information and processing of application by the concerned public administration.
• Right of way fees.
• Development and additional upgrading costs.

According to the study mentioned in the law, “the TRA shall refer the decree pertinent to the use of public properties by service providers to the Council of Ministers, through the Minister of Telecommunications, for ratification.”

Q: In brief, what are the main points of the above draft decree?

A: The proposed draft decree defines the rights and obligations (including charges) and main procedures to be adopted between the service providers and relevant public administrations. It is divided into 6 parts as follows:

1. Definitions: terms used in the decree, such as public property, relevant public administration, and allowed use, are clarified.
2. Conditions of use: this encompasses the rights and obligations of each party with respect to the use of public properties.
3. Procedures: outlines basic procedures to be followed in order to secure/obtain information and request usage.
4. Charges and Fees: provides general rules and equations to be applied for the calculation of different fees, in addition to a detailed appendix of these rules.
5. TRA Responsibilities: dictates the TRA’s role as a mediator to resolve disputes that may arise between relative administrations and service providers, and the procedures to be followed in such cases.
6. Miscellaneous provisions: states the general provisions including, but not limited to, the interpretation of decree, periodic inspections, and monitoring of implementation.

Q: How does the TRA apply its efforts to amend the laws, while simultaneously coordinating with new development objectives?

A: After having reviewed the applicable Buildings Code, the TRA discovered that it lacks provisions which impose the presence of minimum infrastructure to accommodate broadband services. Supported by experts, the TRA conducted a technical study to investigate the specifications adopted internationally and by SOLIDERE. This helped indentify the most convenient recommendations and clarify specifications to be adopted in the permit for new buildings, so as to accommodate broadband services at minimal cost to the consumer.

Within this context, the TRA held frequent meetings with the President of the Council of Ministers and the Directorate General of Urban Planning. Both agreed to commission the TRA to prepare a study which defines the technical requirements for rehabilitation of new buildings, provided that the applicable decree related to the building law is amended. It is then to be submitted to the Council of Ministers, through the Directorate General of Urban Planning, for ratification.