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Harb proposes three options for future of cellular networks [Daily Star, The (Lebanon)](Daily Star, The (Lebanon) Via Acquire Media NewsEdge) BEIRUT: Lebanon extended the contracts of mobile operators touch and Alfa, as Telecommunications Minister Boutros Harb prepares to offer three different options to Cabinet regarding the future of Lebanon's cellular networks. "The minister extended the contract with us for an unlimited period until he returns with a clear answer from the Cabinet on his new proposals," a spokesperson for Alfa told The Daily Star Tuesday. Harb will ask the Cabinet Thursday to choose one of three options: renew the contracts with the current firms under new conditions, launch a new tender to attract new companies or allow the Telecommunications Ministry to run the mobile networks itself. The contracts with touch, which is owned by Kuwait-based Zain Telecommunications Company, and Alfa, which is owned by Cairo-based Orascom Telecom, officially expired Tuesday. Harb, according to insiders, will assure the ministers that his ministry is capable of managing the networks if the contracts are not extended and new investors are not found. The minister has sent a letter to the Cabinet urging its members to take a quick decision on the fate of the current companies and on whether a new tender should be launched. Harb has prepared a set of conditions that potential companies would have to fulfill if the Cabinet decided to launch a new tender. According to the current contracts, all of the gross revenues from the cellular networks go to the state's treasury and in return the companies receive a fixed monthly fee from the Finance Ministry. Should the Cabinet authorize the ministry to manage the cellular networks itself, the state will keep on all of the staff in touch and Alfa with the exception of the management, who will return to the mother companies. There are close to 4 million mobile subscribers in Lebanon. This figure is considered high enough to be attractive to international investors. Touch and Alfa have come under increasing criticism for the poor quality of lines. The companies argued Lebanon's geographical features were one of the main reasons the cellular lines got interrupted occasionally. The cellular networks generate over $1.5 billion in revenue to the treasury each year, making it the third largest source of income for the state after customs and VAT. Sources told The Daily Star that the Cabinet may opt to renew the contracts with the current companies for another six months because some ministers believe that Lebanon may not be able to get good offers from new firms to manage the networks. (c) 2014 The Daily Star. All rights reserved. Provided by SyndiGate Media Inc. (Syndigate.info). |