Legal Action against Alfa and MTC

Beirut, Lebanon, - Tuesday, April 12th 2011 [ME NewsWire]

Cedarcom confirms its position on broadband and 3G services in Lebanon: We support the implementation of the latest technologies in Lebanon, including VoIP, VDSL, fiber to the home, 3G, 4G, WiMAX (e&m) and is support implementing transparent regulations and enforcing fair competition on all operators as stated in Telecom Law 431/2002. Cedarcom is against the creation of a new monopoly in broadband services.

Law 431 transferred the powers of licensing, regulating and monitoring the telecommunications market from the Ministry of Telecom to the Telecommunications Regulatory Authority (TRA). Article 19.1 states that 3G services are licensed through a decree issued by the Council of Minister’s. Article 15 states that radio frequencies are licensed by the TRA. As of today, Alfa and MTC do not have a license from Council of Ministers or licensed frequencies for 3G from the TRA.

The Law is enacted said Cedarcom’s spokesperson: No question about that. The TRA previously licensed GSM frequencies for both operators Mobile Interim Company no. 1 SAL (Alfa managed by Orascom Telecom) and Mobile Interim Company no. 2 SAL (MTC managed by Zain) in 2008/2009. TRA also licensed frequencies to the Lebanese Army, Electricite du Liban, Ogero Establishment and the numerous private sector data operators. To review the decisions (www.tra.gov.lb/Decisions).

In numerous occasions in 2009 and 2010, the Lebanese Telecom Association sent letters to the Minister and TRA warning of the increasing threat of creating a new monopoly in wireless broadband services by introducing 3G services in the absence of licensing, un-equal taxation, and unfair competition among government owned and private operators.

The market is already suffering from fixed line, mobile GSM monopolies and is suffering from unfair competition. ISPs and Data Operators are prohibited from getting long term licenses and are forced to pay up to 60% of direct and indirect taxes, while Alfa, MTC and Ogero do not. All of this is anti-law 431. How can the private sector invest in advanced networks? How can there be any competition? Isn’t the consumer that loses due to monopolies? The private sector employs around 950 Lebanese professionals – are we supposed to ask them to look for jobs abroad? “We asked Alfa and MTC to publish their 3G licenses and frequencies without any reply till date, and we challenge them again now in front of the public: Did you get 3G licensed by the Council of Ministers? Did you get 3G frequencies licensed by the TRA?

Based on the above infringements, several licensed operators took legal actions against both operators Alfa and MTC as well as the MoT.

We want Lebanon to be back on the forefront of technology and innovation. We were very disappointed to realize that Lebanon ranks last among 186 Countries in the world in internet speed! The main reason is “monopolistic price fixing practices and unfair competition. The only telecom sector with competition is the internet and wireless broadband sector and with these violations this sector will die. We want 3G services all over Lebanon, yet we are against breaking the law and against creating a new monopoly in the wireless broadband service controlled by Alfa and MTC. Why don’t they get a license like every other operator in Lebanon? Can it be that Orascom and Zain manage operators that are above the Law?”.

The Telecom Regulatory Authority have to take a decisive transparent regulatory role, enforce the implementation of Law 431, and enforce fair competition and equal taxation on all operators; while Alfa and MTC need to acquire 3G licenses from the Council of Ministers, and acquire for frequencies from the TRA.

Contacts

Ms. Rana Mortada

MarCom

Cedarcom

+9611-296000

www.cedarcom.net

pr@cedarcom.net