Mobile connection in Lebanon is the most expensive in the region where almost 2/3 of the fees is accounted for by overheads and taxes. The new coalition government has retracted previous governmental promises to decrease mobile subscription rates. Apparently, under pressure from Sanioura, the price cut was postponed because the mobile sector provides the main income in (much needed) foreign currency for the public pocket.
More importantly, the decision to postpone price cuts follows an established policy of eliminating competition and insuring maximum profit with the eventual aim of fully privatizing the telecommunications sector. The ridiculous prices the Lebanese pay for their mobile connection is the bait that will lure the highest bid (estimated to be between $5 & $7 bn). This policy, by a self-proclaimed liberal and progressive political elite, has gone hand in hand with monopolizing the market and insuring that any competition is nipped in the bud.
The same strategy is followed by the government owned OGERO with respect to Broadband networking. Lebanese ISP’s pioneering work with Internet in the region came to a near complete halt with the absence of proper infrastructure to develop further. Not only did it take forever for OGERO to install the infrastructure, but now they are making it near impossible for the independent ISPs to run a profitable service. OGERO limits their trunk bandwidth, thus limiting the number of subscribers they can have. OGERO also takes its time processing applications for increased bandwidth, undermining private ISPs ability to meet client demands. The result is that OGERO’s share of the market increases. Why? To better the quality of telecom? Rather, the better to privatize with, my dear!
So, while the private sector pioneered Internet connection in Lebanon, the government slows it down, setting us back 10 Internet years with one of the slowest and most expensive Broadband in the region. Instead of supporting and subsidizing private efforts, the government stabs its own memorandum of understanding with the private-sector in the back. Such is government policy of supporting economic and social growth. All this, and the service sector is considered a priority!
It is quite easy to blame it all on Hariri entourage’s economic policy. But now with the coalition government, it is becoming increasingly clear that mindless privatization at the expense of responsible, planned development and sustainable growth is a trait shared by government and opposition alike – if such a distinction holds at all when it comes to their political programs. Once upon a time, when Hizballah was outside government, Nasrallah called the privatization of the Telecom sector “the biggest looting operation in the history of Lebanon.” Not only is the silence deafening now, but the minister of telecommuncations is non other than Orange golden boy. Known for shooting his mouth off from the position of opposition, Jubran Basil is off to a very good start inside the bastion of bowel movement!
August 12, 2008 at 11:20 pm
I couldn’t have put it any better. Really very important piece. Hope it reaches the right ears to start some actions.
August 13, 2008 at 4:45 am
[...] the most profitable businesses in the country, it remains an expensive service for citizens. In her new post, Ms. Tee discusses the reality most Lebanese are facing. Posted by Nash Suleiman Print [...]
August 13, 2008 at 10:16 am
Great post.
It is about time that we stop being drawn into the petty, sectarian, hedonistic politics and focus on our entire failed political establishment.
The whole system needs an entire overhaul, as does the hierarchy. There is no good guy bad guy in Lebanon anymore, it’s just an entire failure.
The internet is a powerful medium for independent bloggers to bypass our partisan media and highlight what’s really behind Lebanon’s economic and social stagnation … our political establishment.
I’m glad I came across your blog. Keep it up.
August 14, 2008 at 4:02 pm
Nash, Antoun:
Thank you for the kind words.
Antoun:
I totally agree with you on the need for an overhaul. Problem is that most people (and I mean citizens, not politicians) see that as threatening to their existence as a sect. I am sure you have experienced that yourself.
August 20, 2008 at 1:25 pm
Ms Tee,
Being raised in the West, I have never really thought in terms of my sect.
I find it ironic that hundreds of thousands of Lebanese are content to share their neighbourhoods in Western countries with people of many different confessions and ethnic groups, yet in Lebanon it becomes an issue of existence.
We have to root out the fear that has been drummed into our people that paralyses them from questioning their leaders who commit widespread fraud on a daily basis.
Of course, how to do that is the golden question. :)