Beirut September 22, 2004 Presentation Regional Telecom Trends and Strategic Options for Liban Telecom inistry of Telecommunications
Oct 17, 2014
BeirutSeptember 22, 2004
Presentation
Regional Telecom Trends and Strategic Options for Liban Telecom
Ministry of Telecommunications
2Booz | Allen | HamiltonMinistry of Telecommunications
This paper presents the strategic considerations for the creation and privatization of Liban Telecom in the context of the regional telecommunications sector trends
The M.E. telecom sector has progressed at an unprecedented pace since 1998, creating an unexpected ‘democratization’ of communications services
The underlying driver was, is, and will continue to be a universal acceptance of deregulation as an indispensable process to develop the sector
– Concept is now widely anchored among policy makers, albeit at different stages of maturity
– Challenge has evolved from why to how to deregulate, and the M.E. still has a long way to go
– The Lebanese telecommunications market is likely to accompany the regional liberalization trend
The emerging environment poses considerable challenges for incumbent operators as they fast-track their readiness to meet the future challenges
– The corporatization and privatization of Liban Telecom is a potential vehicle for increasing the incumbent’s readiness for market liberalization and full competition
3Booz | Allen | HamiltonMinistry of Telecommunications
Total Connectivity has progressed rapidly, averaging between 22% and 31% per year …
Note: GCC includes: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE. Levant and North Africa include: Algeria, Egypt, Jordan, Lebanon, Morocco, Syria
Source: ITU 2004
Total Connectivity (Fixed + Mobile)(in Thousand Subscribers)
47%
92%31%59%
53%
8%
69%
41%
1998 2003 1998 2003
GCC Markets Levant & Selected North Africa Markets
Fixed
Mobile
CAGR(1998-2003)
6,844
22%18,645
8,800
33,432
CAGR(1998-2003)
91%
31%
14%
36%
7%
4Booz | Allen | HamiltonMinistry of Telecommunications
…positioning the total region well ahead of the world average
1.5%
16%
27%
M.E. GDPGrowth
WorldConnectivity
M.E.Connectivity
Total Connectivity CAGR (1998-2003)
Note: M.E. market definition includes Gulf (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, UAE), Levant and North Africa (Algeria, Egypt, Jordan, Lebanon, Morocco, Syria)
Source: ITU 2004
CommentsComments
Revenue growth estimated at a CAGR of 17%, with 2002 total nearing USD 18 Billion
Telecom investment estimated at USD 17 Billion over 1998-2002
Total GDP contribution estimated at USD 130 billion over 1998-2002
Revenue growth estimated at a CAGR of 17%, with 2002 total nearing USD 18 Billion
Telecom investment estimated at USD 17 Billion over 1998-2002
Total GDP contribution estimated at USD 130 billion over 1998-2002
5Booz | Allen | HamiltonMinistry of Telecommunications
Market liberalization is creating a new set of challenges for incumbent operators
Note: (*) Mostly under the management or BOT contract for the MoPTM= Monopoly, D= Duopoly, C= Competitive
CountryCountryIncumbent Operator
Incumbent Operator F
ixe
dF
ixe
d
Mo
bil
eM
ob
ile
BahrainBahrain BatelcoBatelco MM DD
KuwaitKuwait MOCMOC MM DD
OmanOman OmantelOmantel MM DD
QatarQatar (Qtel)(Qtel) MM MM
Saudi ArabiaSaudi Arabia Saudi TelecomSaudi Telecom MM DD
UAEUAE EtisalatEtisalat MM MM
Da
taD
ata
Inte
rne
tIn
tern
et
MM CC
CC CC
MM MM
MM MM
CC CC
MM MM
Monopoly Further Liberalization expected (2004)
Source: Press releases, Arab Advisors Groups, Regulator Publications, Booz Allen Hamilton Analysis
EgyptEgypt Egypt TelecomEgypt Telecom
JordanJordan Jordan TelecomJordan Telecom
LebanonLebanon MOT/ OGEROMOT/ OGERO
MM
MM
MM
DD CC CC
DD CC CC
D*D* C*C* C*C*
Incumbent Key ChallengesIncumbent Key Challenges
Ensure cost-effective service development and delivery
Develop services based on true customer needs
Ensure speedy market responsiveness
Build organizational flexibility
Create strong cross-functional interfaces
Develop strong corporate governance for accountability, transparency and equity across the business
Capture new business opportunities
Ensure cost-effective service development and delivery
Develop services based on true customer needs
Ensure speedy market responsiveness
Build organizational flexibility
Create strong cross-functional interfaces
Develop strong corporate governance for accountability, transparency and equity across the business
Capture new business opportunitiesMoroccoMorocco Maroc TelecomMaroc Telecom
SyriaSyria (STE)(STE)
MM
MM
DD MM CC
DD MM DD
6Booz | Allen | HamiltonMinistry of Telecommunications
Privatization and the level of market focus are key factors in shaping the incumbent’s readiness to meet future challenges and risks
State Owned & Non-Corporatized
State Owned & Non-Corporatized
Kuwait Ministry of Communications
Lebanon Ministry of Post and Telecommunications, Ogero (Lebanon)
Kuwait Ministry of Communications
Lebanon Ministry of Post and Telecommunications, Ogero (Lebanon)
State Owned & Corporatized
State Owned & Corporatized
Algerie Telecom
Omantel
Syria Telecommunications Establishment
Telecom Egypt
Algerie Telecom
Omantel
Syria Telecommunications Establishment
Telecom Egypt
Partially /Fully Privatized
Partially /Fully Privatized
Batelco
Etisalat
Jordan Telecom
Maroc Telecom
Q-Tel
Saudi Telecom
Batelco
Etisalat
Jordan Telecom
Maroc Telecom
Q-Tel
Saudi Telecom
Selected M.E. Incumbents Segmentation
Low Level of Market Focus High
7Booz | Allen | HamiltonMinistry of Telecommunications
Case in point is Algerie Telecom’s inhibited performance in the cellular segment post partial liberalization…
Algeria Cellular Market Growth(in Thousand Subscribers)
10%14%100% 30%
90%
86%
70%
End 2001 End 2002 Mid 2003 End 2003
1,016
451
95
Source: Arab Advisors, Global Mobile
1,409
Algerie Telecom
Orascom
CAGR(2001-2003)
22%
285%
8Booz | Allen | HamiltonMinistry of Telecommunications
… which contrasts with Maroc Telecom’s performance over the same period
71%72%
77%
82%
29%
28%
23%
18%
2000 2001 2002 2003
5,730
4776
2,852
Source: Arab Advisors, Global Mobile
Morocco Cellular Market Growth(in Thousand Subscribers)
Maroc Telecom
Meditelecom
CAGR(2000-2003)
36%
59%
30%
7,160
9Booz | Allen | HamiltonMinistry of Telecommunications
In Lebanon, the formation and privatization of Liban Telecom is defined in Part VIII of the Telecommunications Law
The company will be constituted by decree taken in the Council of Ministers, upon recommendation of the Minister, as a joint-stock company
Due process, led by independent and expert parties, will apply to the evaluation of assets, rights, obligations and current operations for potential transfer to Liban Telecom. The company will be owned by the State of Lebanon, until such time it is privatized
The Board of Directors and Chairman will be appointed by the Council of Ministers, as long as all shares are owned by the State of Lebanon
Liban Telecom may be granted exclusivity to provide any of basic telephone service, voice public-international service, telex and telegraph service (local, international), for a period not exceeding five years from date of its formation
The government may, by decree taken in the council of Ministers and within a maximum period of two years from date of constitution of the Company, proceed with the sale of not more than 40 percent of shares of the company to a ‘strategic partner’. The partner will be entrusted with the management of the Company as long as he shall continue to hold at least half of the shares originally purchased
The Council of Ministers, upon recommendation of the Minister, shall determine dates of selling the remaining shares owned by the State to private sector investors
Staff from Ministry and OGERO may be selected by Liban Telecom based on terms of selection to be developed within three months following the appointment of the Board of Directors, in coordination with the Minister. If selected, employees will enter into agreement with Liban Telecom
Selected Legal Requirements Pertaining to Liban Telecom
Source: Adapted from Telecommunications Laws as published in the Official Gazette on July 23, 2002
10Booz | Allen | HamiltonMinistry of Telecommunications
Liban Telecom should undergo firstly a corporatization phase followed by partial privatization
Company is Legally Established
Company FullyCorporatized
Company Partially or Fully Privatized
Liban Telecom Privatization Milestones
Need to prioritize market facing initiatives– Market segments to focus on– High value service offerings
Competition taking note and reacting
Need to prioritize market facing initiatives– Market segments to focus on– High value service offerings
Competition taking note and reacting
Need to roll-out total portfolio against the targeted market segments
Escalating customer expectations Regulatory levers come into effect,
impeding some go-to-market actions
Need to roll-out total portfolio against the targeted market segments
Escalating customer expectations Regulatory levers come into effect,
impeding some go-to-market actions
Market ChallengesMarket Challenges
Operational ChallengesOperational Challenges
Rapid design of and alignment on the operating model
Selective migration of MoPT and OGERO employees, and external recruiting as required
Opening balances and accounting structure, including transfer of assets
Rapid design of and alignment on the operating model
Selective migration of MoPT and OGERO employees, and external recruiting as required
Opening balances and accounting structure, including transfer of assets
Full roll-out of the envisaged operating model, including employee mapping
Full roll-out of supporting IT systems
Full roll-out of process mapping methodology, company-wide
Full roll-out of the envisaged operating model, including employee mapping
Full roll-out of supporting IT systems
Full roll-out of process mapping methodology, company-wide
(12-18 months) (12-18 months)
Non-Exhaustive
Non-Exhaustive
11Booz | Allen | HamiltonMinistry of Telecommunications
The end game of the phased approach is value creation
Base Value Upon Corporatization
IncrementalValue Due Structuring and Operationalization
IncrementalValue Through
Institutionalization
IncrementalValue Through
Market EconomyOperation
PotentialFutureValue
Potential Selling Price to Strategic Investor
Potential Selling Price at 1st flotation
Potential Selling Price at 2nd flotation
Timeline
Mar
ket
Val
ue
Phased Value Creation at Liban Telecom
Conceptual
Conceptual
International experience suggests that adequate structuring could
enhance value by up to 90%
International experience suggests that adequate structuring could
enhance value by up to 90%
12Booz | Allen | HamiltonMinistry of Telecommunications
The operating model at Liban Telecom could likely be one of a holding structure with fully accountable business units, and corporate center and a group of shared services…
Liban Telecom Envisaged Organizational Model Architecture
Outsourced Services
Outsourced Services
CorporateCenter
CorporateCenter
Shared ServicesShared ServicesCustomer-FocusedBusiness Units
Customer-FocusedBusiness Units
A lean corporate center will focus on:– Setting corporate strategy– Coordinating capital and resource
allocation– Managing risk– Interfacing with external constituencies
(shareholders, regulatory bodies, etc.)
Business Units created around Customer Segments will serve as primary P&L responsibility points, focused on managing assets and growing the business
Strategic Guidance
Results
Request
Services
CorporatePolicy
Services
Manage
Services
Shared Services platform to provide market competitive transactional and expertise services demanded commonly across the organization, in addition to exploring and managing outsourcing opportunities
13Booz | Allen | HamiltonMinistry of Telecommunications
… which would allow Liban Telecom to selectively acquire strategic partners, as required per business unit should there be a decision to do so
BenefitsBenefits
Multiple Strategic Partnership Model
Holding GroupHolding Group100%
80% 60% 51%
20% 40% 49%
Private and Public Placement
Private and Public Placement
Business Unit 1
Business Unit 1
Business Unit 2
Business Unit 2
Business Unit 3
Business Unit 3
Business Unit 4
Business Unit 4
Partner 1Partner 1 Partner 2Partner 2 Partner 3Partner 3No required partnership
Strategic partnership value-add is customized to each business line, with an emphasis on:
– Economies of scale, particularly in technology acquisition, deployment and operation
– Access to new service development knowledge and platforms
– Access to regional/global networks, enhancing price competitiveness to end users
Strategic partnership value-add is customized to each business line, with an emphasis on:
– Economies of scale, particularly in technology acquisition, deployment and operation
– Access to new service development knowledge and platforms
– Access to regional/global networks, enhancing price competitiveness to end users
14Booz | Allen | HamiltonMinistry of Telecommunications
The envisaged model entails a shift from the functional structure currently prevailing at the MoPT and OGERO…
Current MoPT Structure
PostPost
Lebanon Ministry of Post and TelecommunicationsLebanon Ministry of Post and Telecommunications
OGEROOGERO
Technical Division
Technical Division ITIT
FinanceFinance HRHR
Commercial Division
Commercial Division OperationsOperations
General MonitoringGeneral
Monitoring
Operation and Maintenance
Operation and Maintenance
Engineering / Installation
Engineering / Installation
Shared ServicesShared
Services
15Booz | Allen | HamiltonMinistry of Telecommunications
… to one that is sector specific
Liban Telecom Business Model
SalesSales
MarketingMarketing
Product & Content Development
Product & Content Development
Network ManagementNetwork Management
Support FunctionsSupport Functions
Customer ServiceCustomer Service
Corporate CoreCorporate Core
Mo
bil
e S
erv
ice
s
En
terp
ris
e S
olu
tio
ns
Wh
ole
sa
le
Network
HR, IT, Procurement & Legal Affairs
CEO’s Office, Corp. Strategy & Steering, Regulatory Affairs, Communication, Business Development, Corporate Finance
Key Telecom Activities
Fix
ed
Se
rvic
es
Preliminary
Preliminary
16Booz | Allen | HamiltonMinistry of Telecommunications
The roll-out of the envisaged business model raises a series of challenges for Liban Telecom
Corporatization/Privatization Implementation Challenges
What is the detailed organization structure and manpower plan?
How to map OGERO and MoPT employees to Liban Telecom with minimal disruption?
How to migrate from the current situation to a new process map?
What is the detailed organization structure and manpower plan?
How to map OGERO and MoPT employees to Liban Telecom with minimal disruption?
How to migrate from the current situation to a new process map?
What will Liban Telecom’s growth strategy be? What will the cost reduction opportunities be? What is the set of financial tools to be
implemented to enhance the company’s performance (activity-based costing, accounting separation, etc.)
What will Liban Telecom’s growth strategy be? What will the cost reduction opportunities be? What is the set of financial tools to be
implemented to enhance the company’s performance (activity-based costing, accounting separation, etc.)
What is the target network and IT architecture and the technologies to be adopted?
What is the technology migration strategy from the current to the target architecture?
What is the detailed technological evolution roadmap?
What is the target network and IT architecture and the technologies to be adopted?
What is the technology migration strategy from the current to the target architecture?
What is the detailed technological evolution roadmap?
What customer segmentation will be used? What are the services to be implemented
and according to which roadmap? What will Liban Telecom’s brand strategy
be?
What customer segmentation will be used? What are the services to be implemented
and according to which roadmap? What will Liban Telecom’s brand strategy
be?
Operating Dimension
Financial Dimension
Technology Dimension
Customer Dimension
Liban
Telecom
Corporate
Goals
Liban
Telecom
Corporate
Goals
17Booz | Allen | HamiltonMinistry of Telecommunications
1. Financial Dimensions
Lead FactorsLead Factors Resulting ChallengesResulting Challenges
Growth Strategy Growth Strategy Build the Fixed business around a clear service portfolio with adequate market segmentation, with Mass Broadband as a central part of the growth strategy
Develop the Mobile business on the shortest critical path to seize the under-served market potential
Develop the Enterprise group primarily around the Data access business and customized Managed Data Services. Combine with remaining access services by Liban Telecom to offer one-stop-shop for serving Enterprises
Define the boundaries and develop the Wholesales business, which serves as a commercial arm to the Network, selling capacity internally as well as externally
Build the Fixed business around a clear service portfolio with adequate market segmentation, with Mass Broadband as a central part of the growth strategy
Develop the Mobile business on the shortest critical path to seize the under-served market potential
Develop the Enterprise group primarily around the Data access business and customized Managed Data Services. Combine with remaining access services by Liban Telecom to offer one-stop-shop for serving Enterprises
Define the boundaries and develop the Wholesales business, which serves as a commercial arm to the Network, selling capacity internally as well as externally
Cost Efficiency Strategy Cost Efficiency Strategy Optimize the manpower plan and ensure gradual mapping of employees to the new operating model in line with market take-up
Establish aggressive targets for cost management, with clear year-on-year initiatives for cost rationalization. Key areas to consider: (i) operation and maintenance, and (ii) general and administrative. Conversely ensure adequate funding for sales and customer service activities
Optimize the manpower plan and ensure gradual mapping of employees to the new operating model in line with market take-up
Establish aggressive targets for cost management, with clear year-on-year initiatives for cost rationalization. Key areas to consider: (i) operation and maintenance, and (ii) general and administrative. Conversely ensure adequate funding for sales and customer service activities
Financial Transparency Financial Transparency Establish from Day 1 chart of accounts for the individual businesses, leading to stand alone financial statements with adequate transparency and accountability. This would create, as a result, adequate readiness for accounting separation (regulatory requirement) and transparency for strategic partnership
Develop from Day 1 activity-based costing practices to control operational investments and their relation to revenues and profits
Establish from Day 1 chart of accounts for the individual businesses, leading to stand alone financial statements with adequate transparency and accountability. This would create, as a result, adequate readiness for accounting separation (regulatory requirement) and transparency for strategic partnership
Develop from Day 1 activity-based costing practices to control operational investments and their relation to revenues and profits
18Booz | Allen | HamiltonMinistry of Telecommunications
2. Customer Dimensions
Lead FactorsLead Factors Resulting ChallengesResulting Challenges
Market Segmentation Market Segmentation Develop clear and actionable market segmentation with an emphasis on Residential, SMEs, and Enterprises
Define implications on service and servicing portfolio. Particularly emphasis should be placed on customized sales management, distribution channels, customer care and treatment
Develop clear and actionable market segmentation with an emphasis on Residential, SMEs, and Enterprises
Define implications on service and servicing portfolio. Particularly emphasis should be placed on customized sales management, distribution channels, customer care and treatment
Service Portfolio Service Portfolio Outline full potential of service portfolio to be offered by Liban Telecom, taking into account:
– Fixed: role of VAS, broadband and related content strategy, and bundled triple-play offerings
– Mobile: role of segmented tariff schemes, data services, and synergies with fixed wireless solutions
– Enterprise Solutions: role of IP-based access services, and evolution of service offering to managed data services
Outline full potential of service portfolio to be offered by Liban Telecom, taking into account:
– Fixed: role of VAS, broadband and related content strategy, and bundled triple-play offerings
– Mobile: role of segmented tariff schemes, data services, and synergies with fixed wireless solutions
– Enterprise Solutions: role of IP-based access services, and evolution of service offering to managed data services
Brand Strategy Brand Strategy Seek to build at the outset a strong monolithic branding structure
Emphasize from Day 1 the mother brand to create equity and future leverage
Allow flexibility to accommodate co-branding through future strategic partnerships
Seek to build at the outset a strong monolithic branding structure
Emphasize from Day 1 the mother brand to create equity and future leverage
Allow flexibility to accommodate co-branding through future strategic partnerships
19Booz | Allen | HamiltonMinistry of Telecommunications
3. Technology Dimensions
Lead FactorsLead Factors Resulting ChallengesResulting Challenges
Network Strategy Network Strategy Develop granular perspective of the network requirements, and plan for customized deployment both for Fixed and Mobile to facilitate QoS compliance with market demand – which would translate into optimal return on investments
Plan for migration of the core network towards an IP-based environment, and phase out investments in switching-based equipments
Develop granular perspective of the network requirements, and plan for customized deployment both for Fixed and Mobile to facilitate QoS compliance with market demand – which would translate into optimal return on investments
Plan for migration of the core network towards an IP-based environment, and phase out investments in switching-based equipments
Information Technology Strategy
Information Technology Strategy
Prioritize development of Enterprise Resource Planning solution, inclusive of key start-up modules: Finance, HR, Material Management
Prioritize development of customized customer relationship management and billing system, using open standards to facilitate interface with future alliances and partnerships
Prioritize development of Enterprise Resource Planning solution, inclusive of key start-up modules: Finance, HR, Material Management
Prioritize development of customized customer relationship management and billing system, using open standards to facilitate interface with future alliances and partnerships
Implementation Roadmap Implementation Roadmap Plan for gradual roll-out of technology environment
– Demonstrate commitment in engaging Liban Telecom on growth path, with due investments
– Pace efforts with business development and sustainability
– Allow room for subsequent customization stemming from future alliances and partnerships
Plan for gradual roll-out of technology environment
– Demonstrate commitment in engaging Liban Telecom on growth path, with due investments
– Pace efforts with business development and sustainability
– Allow room for subsequent customization stemming from future alliances and partnerships
20Booz | Allen | HamiltonMinistry of Telecommunications
4. Operating Dimensions
Lead FactorsLead Factors Resulting ChallengesResulting Challenges
Organization Model Organization Model Define early on the operational model for Liban Telecom, and identify roll-out challenges in relation to existing functionalities within MoPT and OGERO
Emphasize readiness of market facing functionalities within the set business units, with the objective to achieve strong go-to-market capabilities and competitive agility
Define and institutionalize on the shorted critical path the corporate governance model to achieve accountability and transparency of objectives, strategies and executions
Define early on the operational model for Liban Telecom, and identify roll-out challenges in relation to existing functionalities within MoPT and OGERO
Emphasize readiness of market facing functionalities within the set business units, with the objective to achieve strong go-to-market capabilities and competitive agility
Define and institutionalize on the shorted critical path the corporate governance model to achieve accountability and transparency of objectives, strategies and executions
People Strategy People Strategy Define mapping process and criteria to select employees from existing pools (MoPT, OGERO), ensure alignment at the level of the Board of Director, and achieve proper communication to promote clarity and fairness
Develop early on gap analysis in skills set and define mitigation strategy. Liban Telecom will likely face typical challenge of re-balancing between dominant technology-driven culture and must-have emerging commercial skills
Define mapping process and criteria to select employees from existing pools (MoPT, OGERO), ensure alignment at the level of the Board of Director, and achieve proper communication to promote clarity and fairness
Develop early on gap analysis in skills set and define mitigation strategy. Liban Telecom will likely face typical challenge of re-balancing between dominant technology-driven culture and must-have emerging commercial skills
Process Mapping Framework
Process Mapping Framework
Develop and align on common platform to map all operating process within Liban Telecom, using telco-industry common standard
– Leverage experience of international operators to enhance operational efficiency and effectiveness
– Adopt ‘open standard’ that would facilitate the operationalization of future alliances and partnerships
Develop and align on common platform to map all operating process within Liban Telecom, using telco-industry common standard
– Leverage experience of international operators to enhance operational efficiency and effectiveness
– Adopt ‘open standard’ that would facilitate the operationalization of future alliances and partnerships
21Booz | Allen | HamiltonMinistry of Telecommunications
Liban Telecom could target a 12-18 month corporatization readiness program
Strategic DimensionsStrategic Dimensions
MonthsMonths
11 22 33 44 55 66 77 88 99 1010 1111 1212 1313 1414 1515 1616 1717 1818
Financial Dimension
Growth strategy
Cost efficiency strategy
Financial transparency
Financial Dimension
Growth strategy
Cost efficiency strategy
Financial transparency
Customer Dimension
Market segmentation
Service portfolio
Brand strategy
Customer Dimension
Market segmentation
Service portfolio
Brand strategy
Technology Dimension
Network strategy
IT strategy
Implementation roadmap
Technology Dimension
Network strategy
IT strategy
Implementation roadmap
Operating Dimension
Organization model
People strategy
Process mapping framework
Operating Dimension
Organization model
People strategy
Process mapping framework
Design Implementation
Indicative
Indicative
22Booz | Allen | HamiltonMinistry of Telecommunications
Competition in Mobile services is likely to follow one of three scenarios
1
2
3
Different Mobile Liberalization and Operational Scenarios
Scenario DescriptionScenario Description
The Fixed sector is corporatized
One of the mobile operators is privatized
Liban Telecom takes over the other mobile operator
The Fixed sector is corporatized
One of the mobile operators is privatized
Liban Telecom takes over the other mobile operator
The Fixed sector is corporatized
Two mobile operators are privatized
Liban Telecom is an MVNO in the Mobile sector
The Fixed sector is corporatized
Two mobile operators are privatized
Liban Telecom is an MVNO in the Mobile sector
The Fixed sector is corporatized
Two mobile operators are privatized
Liban Telecom has a mobile operation
The Fixed sector is corporatized
Two mobile operators are privatized
Liban Telecom has a mobile operation
Symbol in this DocumentSymbol in this Document
LTMLTM MM
LTMLTM MM MM
LTMVNO
LTMVNO MM MM
23Booz | Allen | HamiltonMinistry of Telecommunications
In summary, Lebanon can accompany the liberalization and privatization trend in the region through effective market liberalization and the privatization of Liban Telecom
Telecom market liberalization is inducing significant growth in the region
– Competition driving the introduction of new services and more favorable prices
– Privatization is enhancing the incumbent's ability to compete effectively and add further value to consumers
Corporatization of incumbents aims to create value prior to privatization in order to maximize returns
Liban Telecom should aim to face financial, customer, technology and operational challenges with a systematic and concerted corporatization program
Once a market scenario is adopted for mobile competition, Liban Telecom should be ready to capture the related advantages and mitigate risks associated with the scenario’s disadvantages