Lebanon

New Decision by Qaram Aims to Eliminate Internet Market Monopoly

New Decision by Qaram Aims to Eliminate Internet Market Monopoly

The Minister of Communications in the caretaker government, Johnny Qaram, issued a decision to mandate internet service providers (ISPs) to pay amounts due since July 2017. Qaram instructed the General Directorate of Investment and Maintenance to announce the costs for collecting state rights from the date Decree No. 956 took effect on July 1, 2017, until today, and continuing until the enforcement of provisions regarding controlling illegal networks monopolizing the internet market. The purpose is to manage these networks under the ministry's supervision, introduce fair competition through licensed private sector companies, and eliminate monopolies for the benefit of citizens. This decision is aimed at addressing the phenomenon of illegal internet markets and preventing state waste.

The decision follows the reluctance of companies and illegal network owners to cooperate in implementing the specified regulations and their continued avoidance of following applicable laws and decrees. Their non-compliance persists despite repeated meetings urging collaboration with ministry units to find a solution since the issuance of Decree No. 9458, which aims to preserve all partners in operating this sector under state oversight and curb organized and illegal phenomena harmful to state finances and citizen interests.

The decision's details reference the Audit Bureau Report No. 2021/17 dated November 11, 2021, and the advisory from the Legislative and Consultative Authority No. 2023/181 dated March 23, 2023, along with the Audit Bureau opinion No. 2023/3 dated April 25, 2023, confirming its contents with opinion No. 2023/20 dated September 12, 2023.

According to the decision, the costs must be paid once and are calculated as follows:

1. The cost for each E1 leased by the company and not proven to be utilized and distributed according to applicable laws and regulations is equal to:

- Number of subscribers × 20,000 L.L. for the period from July 1, 2017, to June 30, 2022.

- Number of subscribers × 85,000 L.L. from July 1, 2022, to August 31, 2023.

- Number of subscribers × 550,000 L.L. from September 1, 2023, until the enforcement of Decision No. 1/544 dated October 9, 2023, regarding fees for using monitored connection and distribution networks controlled by the ministry to eliminate all infringements on the use of international E1s, with the charge not exceeding 200,000,000 L.L. for each E1 designated for the service provider.

2. Based on the Audit Bureau opinion No. 2023/3 dated April 25, 2023, which underscores the necessity of collecting dues arising from controlling violations, companies must start paying a monthly Bitstream service fee for each final subscriber on the monitored connection and distribution networks made available to the ministry according to Decision No. 1/544 dated October 9, 2023, and a one-time establishment fee for the Bitstream service for each final subscriber when activating the service to connect them via the ministry's network.

Qaram requested full compliance from companies with items 1 and 2, under the threat of necessary legal actions.

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