In this second quarterly newsletter issued by the TRA, we are pleased to share our vision with investors, citizens and our partners in this sector, and to present the efforts we are making to develop telecommunications services in Lebanon. Our focus in 2009 will be on liberalizing broadband services with the objective of bringing true broadband services to Lebanon and to allow Lebanon to catch up with developed countries in terms of broadband infrastructure and services.

Our vision in this respect seeks to connect, as swiftly and efficiently as possible, all parts of the country and its citizens to the World Wide Web through fiber optic networks and high-speed internet services. TRA is currently working on the preparation of the Request for Application for the broadband licenses, as well as three “enabling” decrees which will provide more clarity to investors, reduce the capital needed to deploy the new broadband networks, and maximize proceeds to the Republic of Lebanon from the auction (whether one-off or recurring).

In preparation for the launch of broadband services in Lebanon, the TRA held, in February 2009, a specialized workshop to present the first two of these draft decrees on “Use of Public Ducts, Poles, Antenna Sites, Rights of Way and Certain Other Public Properties by Licensed Telecommunications Service Providers” and “Annex to Building Code - New Building Requirements for Broadband Service Delivery”. The first of these decrees will not only clarify the terms and conditions on which the licensed Service Providers will be provided access to rights of way and existing infrastructure –such as ducts, conduits, etc., but it will also provide a mechanism for dispute resolution in line with best international practice. The second decree will require that all new buildings be designed and built in such a way so as to provide for the right infrastructure to be “fiber” ready. It is to be noted that the “Annex to Building Code - New Building Requirements for Broadband service delivery” Decree provided by the TRA has already been endorsed by the Directorate of Urban Planning and has gone into effect for all projects that it has to approve.

The workshop was attended by H.E. Minister of Telecommunications, Eng. Gibran Bassil, who praised the TRA work and provided support for the use of public properties for the deployment of telecommunications infrastructure and recognized the importance of this measure for generating additional revenues for the public treasury. Following the workshop, TRA held a series of meetings with various public agencies and associations (such as the Syndicate of Engineers) and is following up on these draft decrees.

TRA has been very busy the last three months working to improve mobile services. TRA has been able to stake a clear role in regulating the market for mobile services despite the fact that the two mobile networks are still being managed under a management contract. TRA supported and facilitated the decrease in prices of mobile services in January, has defined the quality of service indicators that the mobile service providers are required to meet, and will be closely monitoring the performance of these indicators. It has also been monitoring closely the development of a new distribution strategy by each of the mobile service providers and it will be overseeing its implementation. Finally, TRA has started in earnest to address consumer complaints and has achieved great synergies by signing an MOU with the Ministry of Economy and Trade’s Consumer Protection Directorate (CPD).

TRA has also issued the required licenses to the existing data and internet service providers. In February 2009, the Board of Directors approved the following major regulations which are considered significant for the development of the telecommunications sector:

• Service Provider Licensing Regulation
• Spectrum Management and Licensing Regulation
• Local loop Access Regulation
• Spectrum Management and Administrative Charges Monitoring
• Local Loop Access Regulation ( for consultation)
• Draft Spectrum Right to Use Fees Decree ( for consultation)

TRA has crossed another very important milestone towards the reform of the telecommunications market with the endorsement of the first four regulations issued by the TRA by the State Consultative Council,- the highest legal authority in the Republic when it comes to administrative law - including the “Interconnection Regulation”, “Significant Market Power Regulation”, “Technical Quality of Service Regulation” and “Type Approval Regulation.” These regulations will go into effect as soon as they are published in the Official Gazette in the coming weeks.

TRA Draft Regulations for Consultations	TRA Regulations Approved by Board	TRA Regulations Approved by Shura and by Board - Final Form
Local Loop Access Regulation	Service Provider Licensing Regulation	Interconnection Regulation
Draft Spectrum Right to Use Fees Decree	Spectrum Management and Licensing Regulation	Significant Market Power Regulation
Spectrum Management and Administrative Charges Monitoring		Technical Quality of Service Regulation
Draft Decree on the “Use of Public Ducts, Poles, Antenna Sites, Rights of Way and Certain Other Public Properties by Licensed Telecommunications Service Providers”		Type Approval Regulation

I am aware that it is impossible to do justice in this space and even in this newsletter to all the work that the TRA has done over the last three months. TRA is making steady progress towards the liberalization and development of telecommunications and the introduction of broadband services. While we are eager to see the fruit of our work reflected in real, positive, change that Lebanese citizens and Lebanese businesses can gauge, we know that this change will materialize before too long.

Kamal Shehadi, PhD

Chairman and CEO
TRA - Lebanon