Lebanon telecom, Internet services subjected to 7 pct price hike.
August 5, 2023, 3:59 pm

Lebanon telecom

Lebanon telecom, Internet services subjected to 7 pct price hike.

Switching current subscription rates to closer-to-market tariffs, augmentation of infrastructure and opting for more sustainable energy sources are essential to shoring up the future.

Lebanon’s council of ministers ratified a new decree on Thursday subjecting all telecom and Internet services to a 7 percent hike for individuals and a 5.6 percent hike for corporates. The new law replaces the previous rectification in June 2022.

The establishment fee for a new landline will be 50,000 Lebanese lira (Ll), equivalent to $3. This fee includes services such as caller line identification, call waiting and call forwarding on demand.

Telecom revenues have nosedived in recent years, and the biggest cost component for the operators is the consumption of diesel to keep the power generators running, with the country’s economic meltdown plunging the nation into frequent blackouts for hours.

The ministry’s budget gets drained due to the high fuel cost of supplying power to the primary telecom exchangers - making the move toward more renewable energy sources crucial. The reliance on diesel generators for central phone stations is unsustainable and harmful to the environment. Using solar panels, batteries and wind generators will help provide clean and reliable energy sources, Saloum Dahdah, a telecom expert, told Al Arabiya English.

The challenge today is to keep a creaking telecom network up and running.

The 1$/3,900 LBP base pricing for a fixed broadband connection is not sustainable for Ogero, the private service provider. Meanwhile, the current low pricing has raised sustainability concerns while attracting many consumers. Experts believe that switching current subscription rates to closer-to-market US dollar tariffs, investment in fiber installations, introduction of value-added services and transition to renewable energy sources are essential steps towards a more sustainable future.

The conventional dollar rate has been pegged at 22,000 Lebanese pounds since 2022 when the latest decree on currency rate hike was issued. The new law will amend the monthly subscription fee applied since June 2014 to Ll200,000.

Breakdown of the price hikes

Local telephone calls made within the fixed telephone network are included in the monthly subscription up to 1,000 minutes. International Private Leased Circuits or IPLC will also be subject to the same percentage hike.

As far as internet subscription is concerned, it will revert to:

ADSL/VDSL/FTTC: Ll150,000, in addition to the cost of the final device.

HDSL: Ll500,000, in addition to the cost of the final device.

FTTH (Fiber optic): Ll750,000, in addition to the cost of the final device and the cost of the internal connections within the building.
FWA: Ll500,000, in addition to the cost of the final device.

Dedicated: Ll1,500,000, in addition to the cost of the final device.

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Presently, telecom services will be equated at the rate of Lp25,000, instead of Lp89,000, in the parallel market, a source in the Ministry of Telecommunications, who requested anonymity, told Al Arabiya English. He added that the new hike will be insufficient to cover the deficit of Ogero, the local entity entrusted with the sector’s management.

The hike in tariff will need to be applied before the end of the year as more than 70 percent of Ogero’s financial needs — international bandwidth, imports of spare parts and licenses to support contracts — are paid in dollars. At such low rates, covering operational costs and maintaining a high-quality service becomes challenging.

Mobile data speed in Lebanon

Lebanon is ranked 68th out of 100 countries in terms of mobile data speed, with an average of 31 Mbps. In June 2022, the country was in the 103rd position with only 17 Mbps of speed.

One of the critical areas that require immediate attention is augmenting the fiber optic infrastructure across the country, Dahdah said. Lebanon should prioritize the swift installation of fiber networks to meet the demands of consumers and businesses alike. He further said that implementing an acceptable fee for fiber connectivity, which is commonplace worldwide, will help fund the necessary infrastructure development without compromising on quality.

While the telecom sector faces its unique challenges, it is essential to acknowledge that broader reforms are necessary for the country.

Economic fluctuations, corruption and discrepancies in public sector salaries contribute to the complex issues impacting the telecom industry. Addressing these challenges requires a comprehensive approach involving collaboration between various stakeholders and governmental bodies.

However, a hike in telecom tariff also means that a big chunk of the population, whose real wages have nosedived with the plummeting currency rate, can’t afford their phones, which are used for essential daily communication.

To enhance revenue streams and improve customer experience, Ogero can introduce value-added services such as triple play, which combines internet, television, and telephone services. Establishing a national Internet Exchange (IX) will also significantly improve the Quality of Service (QoS) for Internet users in Lebanon, Dahdah advised.

He added that an IX facilitates faster and more efficient data exchange between internet service providers, resulting in improved internet speeds and cost-cutting.

source: alarabiya

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.