Economy

Kraidia: The New Pricing Does Not Meet Our Aspirations to Continue Developing the Sector

Kraidia: The New Pricing Does Not Meet Our Aspirations to Continue Developing the Sector

After the Cabinet approved the increase in telecommunications and internet tariffs, the new prices have started to appear, which are expected to take effect from July. While the bills for the mobile companies "Alfa" and "Touch" will be linked to the Sayrafa platform, the pricing for "Ogero" internet and landline services will be fixed at a 2.5 times increase.

"Ogero" announced that, following the decree to increase telecommunications tariffs approved by the Cabinet on May 20, 2022, the updated pricing schedules will be available on the website http://ogero.gov.lb early next week, and billing according to the decree will begin on July 1, 2022.

The Director General of the "Ogero" authority, Imad Kraidia, described the plan approved by the Cabinet as the best possible option. He stated in an interview with "Al-Jomhouria": "We preferred the increase to be higher so that we could cover our operational costs, especially since the dollar's exchange rate against the lira is still unstable, and we do not know when the exchange rate can stabilize."

He clarified that "65% of our needs, whether for maintenance, licensing, or spare parts, require cash in dollars. However, we must balance between the purchasing power of citizens and their need for internet. Thus, we adopted a price increase of two and a half times, which we believe is the best possible under the current conditions and economic crisis facing the country."

Kraidia confirmed that "Ogero is only responsible for the fixed phone and internet package prices, and its pricing is not related to the Sayrafa platform." He noted that the new pricing "does not meet our aspirations to continue developing the sector," considering that "development has become a luxury that we cannot afford under these circumstances," explaining that "this new tariff will only ensure the sector's continuity through operation and maintenance."

Kraidia pointed out that "the network is still in good condition, but like all sectors, we are suffering from power outages, as our generators operate for more than 20 hours a day amid rising fuel costs, making it difficult for us to cover repair costs and spare parts."

Regarding the new pricing, he stated: "The fixed fee paid by subscribers has increased from 7,000 L.L. to 9,000 L.L. The price per minute will remain unchanged." As for the internet bill, it will be multiplied by a factor of 2.5, according to the attached table.

Kraidia anticipated that "these new prices will lead to an increase in demand for the 'Ogero' network, as it will remain the cheapest compared to internet services offered by private companies or illegal internet, especially since some of them have started pricing internet bills in dollars." He assured, at the same time, that the "Ogero" network is capable of accommodating new subscribers.

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