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Caretaker Minister of Telecommunications, Johnny Corm, once again pleaded for the approval of the decree under which internet tariffs should be multiplied by seven. During a press conference he held on Tuesday, he clarified the reasons and mechanisms behind the new internet pricing, which, according to him, remains lower than what was applied before the crisis.
Corm told This is Beirut that the increase in internet tariffs is essential “if Ogero needs to continue providing its services”. These new revenues will cover the ministry’s expenses, including salaries and network maintenance. “As a result, the telecommunications sector will no longer face financial difficulties nor will it need to request advances from the Treasury,” explains Corm.
He assures that the new pricing takes into account the weakened purchasing power of the Lebanese people. “The ministry will propose two plans through Ogero. The first one offers 80 gigabytes at a price of 420,000 Lebanese pounds, equivalent to 4.5 dollars, and the second one offers 100 gigabytes at a price of 630,000 Lebanese pounds, equivalent to 6.7 dollars,” he explains.
He points out that this price represents one-fourth of what it was before the 2019 crisis. “These plans account for 60% of internet subscriptions in Lebanon,” adds the minister, clarifying that the plans priced at 5 and 6 million Lebanese pounds are subscriptions for businesses, not individuals, as mentioned by certain media outlets.
An increase that will only affect Ogero subscriptions
Corm wants to clarify that “contrary to circulating rumors, the increase in internet pricing only affects the tariffs provided by Ogero, which are still billed in Lebanese pounds, and does not concern the price paid in fresh dollars for internet.” He states that the latter is “either provided by licensed companies such as IDM, Inconet, etc., or through mobile operators Touch and Alfa, who offer 3G and 4G services, or unlicensed companies commonly known as neighborhood distributors.” Corm reiterates that “the solution to this illegality is the implementation of Decree 9458, which proposes organizing the networks of all these illegal distributors so that they can be connected to the official Lebanese network.”
It is worth noting that as many as 60% of internet service providers in Lebanon are operating illegally and do not have a license.
The objective, the minister adds, is to end the monopoly, make the network public, and allow each subscriber to choose the provider they prefer, regardless of the region they reside or work in.
Regarding the issue of “E1” (an E1 line being one of the first forms of internet connectivity adopted by businesses) that has been raised in the media as being sold at a low price while mobile phone and mobile internet operators Alfa and Touch sell it at a high price, Corm clarified that “E1” is considered a raw material (data) of the ministry. “We distribute it to Alfa and Touch, who use it as a raw material and transform it through the investments they make. Therefore, I cannot increase the price of E1 without increasing the price of the internet, as they are linked,” he explains.
Regarding the reforms and austerity policies that some advise him to implement before increasing the price, Corm simply emphasized that any reform or austerity plan requires investments and therefore funds.
When asked whether the Council of Ministers would approve the decree, especially since it was postponed during their last meeting, Corm responded that the government could meet next week. He then highlighted that the cabinet is faced with two choices: either securing funds for telecommunications by adopting the new pricing or supporting the sector. However, the minister wants to remind everyone that it is ultimately the citizens who have paid a high price for all the subsidy policies.