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COUNTRY PERSPECTIVES - LEBANON
Telecom & internet
The sector is divided between a fixed telephone network managed by the traditional public operator OGERO and two mobile telephony networks managed by Cellis (the France Telecom Group) and LibanCell on the basis of BOT (Build-Operate-Transfer) contracts.
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Telecom & internet

The sector is divided between a fixed telephone network managed by the traditional public operator OGERO and two mobile telephony networks managed by Cellis (the France Telecom Group) and LibanCell on the basis of BOT (Build-Operate-Transfer) contracts. Cellis and LibanCell have nearly 800,000 subscribers using monthly subscriptions and prepaid cards. However, the government decided at the end of 2002 to put an end to the two contracts and to sign a new contract with MTC Touch and Fal-Detecon (Alpha Network), which will manage the mobile telephony network on behalf of the State.

The sale of 40 percent of State shares in the public company Lebanon Telecom is envisaged by 2009 and it is expected that a second fixed telephone operator will enter the market in 2009 after the end of Liban Telecom’s three-year period of exclusivity.

Eleven official internet service providers (ISP) share the market for internet access, with a penetration rate estimated at 17.5 percent (approximately 700,000 subscribers). Recently, high-speed broadband internet services have been authorised for ISPs and internet users, available periodically, for example at the technopole of Berytech. On the other hand, voice over IP and video conferencing are illegal in Lebanon.

The ICT sector continues to benefit from private investment and Lebanon offers high profits, thanks to its comparative advantages, its highly qualified and polyglot labour force, and a very dynamic advertising market. Lebanon is the primary producer of TV ads in the Middle East as well as a media and broadcasting leader, providing digital content throughout the Arab world.

The Lebanese State has announced construction of a development complex to accommodate ICT companies at Damour, specialised in electronics, computer equipment, software, and biotechnology. The total cost of this project, initiated and supported by the American organisation USTDA, is estimated at 30 million dollars, to be implemented in 2006.
 
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