The Ministry of Telecommunications has entered a new phase regarding the activation of the decision to control illegal internet networks. If this decision is successfully implemented, it could lead to generating approximately $60 million in annual revenue for the state treasury. However, caution is advised in optimism, as the success ultimately hinges on execution. Minister of Telecommunications in the caretaker government, Johnny Qarm, explained to the "Nidaa al-Watan" newspaper the decision taken following the expiration of the deadlines set by decision No. 544/1, which outlines the mechanism for controlling networks established unlawfully or without licensing. He clarified that this involves executing the decree issued in June 2022 as part of the decree raising tariffs in sections 16 and 17 of the fourth section. Additionally, he noted that this decree was developed during his tenure to legalize and regulate the internet sector. The primary objective of this action is to protect subscribers and consumers by halting monopolies and controlling unregulated prices, emphasizing that the implementation of this decision will be conducted according to the laws and decrees governing the ministry's work.
The emergence of illegal internet networks dates back to 2014, the year this new phenomenon began to appear without any intervention to limit it until 2021 when a report from the Court of Audit was issued. The reason for the establishment of these illegal networks stemmed from the state's shortcomings at various levels, which created a vacuum in the internet sector that some filled in an unregulated manner by extending networks to different areas. Currently, the number of subscribers to these illegal networks is approximately 700,000, and the owners of these networks have not paid any taxes to the state even though they sell internet access at higher rates than the official tariff, generating profits for about ten years. If this new measure succeeds, the state could collect around $60 million annually.
Qarm stressed that the main idea behind implementing the decree is to curb monopolies and bring these illegal networks under the management of the Ministry of Telecommunications, allowing consumers to subscribe to any licensed provider. Moreover, opening the network to mutual connectivity boosts competition and fees will be collected from the consumer at official prices determined by the state.
He pointed out the steps taken following the issuance of the decree, including establishing a mechanism for implementation and forming a specialized committee to follow up on the file. To avoid the use of force, the decree authorized the Minister of Telecommunications to sign maintenance contracts, with their revenues set at 30% of the fee collected by the ministry. However, this did not receive any response, leading to the issuance of a mandate at the end of the current month that obliges internet service providers to pay 550,000 Lebanese pounds per month for each subscriber on the controlled network, while neighborhood distributors will collect 330,000 pounds per subscriber. This mandate is expected to compel them to contract with the state as it serves their interests.
The minister revealed that he held several meetings with neighborhood distributors, emphasizing that their bet on his departure and the neglect of the decree was misguided, as this project holds significant importance for him and he will follow it through to the end. He believes they have reached a consensus that the decree will be applied, which is the most critical step. He also explained to the network owners that there is no need to fear losing their investments, as the decree clearly states that after controlling the network, the file will be referred to the competent judiciary to decide on ownership and compensation or impose fines. Should there be a lack of voluntary cooperation with the ministry, those individuals will be referred to the criminal court, which has full authority to connect the illegal network to the state network, even by force. He noted that 59 out of 106 companies have cooperated with them and provided information about all distributors.
Regarding the ministry's ability to confront illegal internet networks in light of political protections and mafias, particularly after years without legislation in the sector, he responded that if no action is taken, and a neighborhood distributor decides to increase fees on the consumer, what will be the state's position? He stated that he is equipped with conscience and determination, fully convinced that this is the correct direction, which is a reality that cannot be denied or altered. The goal is to serve the interests of the state and the consumer, who cannot be left at the mercy of a tyrannical person. The principle is correct, and when he communicates with any political party, they cannot oppose it; all have expressed willingness to cooperate, and the effectiveness of this cooperation ultimately depends on execution.
He emphasized that there are 106 ISP licenses in Lebanon, whereas the average should not exceed 15 licenses. Additionally, Law 431, which has not been implemented since its issuance in 2022, discusses the value of Libantelecom, defined by the number of subscribers and its presence on the ground.
**Latest Developments on the Starlink File**
Separately, regarding the Starlink file and its latest developments, Qarm believes it will enter Lebanon sooner or later, asserting its economic viability with the potential for substantial revenues for the state since they have managed to secure what is known as exclusivity of representation. Accessing Starlink is only possible through the ministry. They are working on this matter, and the security level still needs some adjustments. Ultimately, they cannot fight against evolution, but it is their duty to find ways to adapt to it. Implementation is not far off, and he had previously received a signed approval from the security authorities for a three-month trial period with Starlink before the decision was rejected by the government due to questions raised by some ministers regarding the identity of the company that would provide 150 devices with a subscription as a gift. There is no need for concern, as the decision on the device's status will be determined in agreement with the security bodies, which can obtain all the information they require during the trial period to finalize the contract with Starlink, thus necessitating a starting point.
