Lebanon telecommunications ministry’s budget would be based on two figures instead of one within the framework of the new state budget, said telecoms minister Johnny Corm.
Corm said the first figure took into consideration the possibility of continuing to charge consumers the same current tariff, which is based on the official rate of LBP 1500 per USD, whilst the second figure sought an increase in the tariff rate from LBP 1500 per USD to LBP 9000 per USD, according to Lebanese media reports.
The minister, however, warned that the first figure, which is based on the current LBP 1500 per USD rate, meant recording a massive annual loss of approximately LBP 350 billion.
“The break-even figure for the ministry of telecoms at present is within the range of LBP 9000,” he added.
Regarding the possibility of exempting some sectors or segments of the Lebanese society from a likely increase in telecoms tariffs, Corm said that exceptions might include workers in the military, security institutions, and students, the reports said.
“Alfa mobile operator can continue its services until April-May 2022 if we don’t immediately raise the tariff rates. As for Touch mobile operator, its services will last for a month before that [till March 2022]; its services will keep deteriorating and eventually be suspended,” Corm said.
“The sole solution is to either raise the tariff, or to have the state support the sector via subsidies, yet the second strategy has proven to be a big failure in the long run,” the minister said.
Regarding the operating expenses of the telecommunications sector, Corm explained that the soaring cost of fuel and gas constituted 64 percent of the operating expenses. Salaries constituted 10 percent, and the value of rented buildings constituted 3 percent.
Corm said the issue of illegal internet would begin to be addressed within two weeks, explaining the state has been incurring huge losses amounting to approximately LBP 600 billion a year caused by 650,000-700,000 illegal subscribers.