TRA's Telecommunications
Liberalization Roadmap
Dr. Kamal Shehadi
Chairman/ CEO
Telecommunications Regulatory Authority
March 11, 2009
UN-ESCWA, Beirut, Lebanon
Although reform has started with the establishment of the TRA,
most telecommunications markets in lebanon are stagnant and
suffer from lack of competition
Current
Indicators
Penetration
Number of
SP
Private / Stateowned
Level of Competition
Mobile Market
35%
2
State-Owned
Monopoly
Fixed Market
63% (*)
1
State-Owned
Monopoly
Internet Market
32.5% (*)
~ 16
Private
Competition
ADSL Market
~ 7.7% (*)
~8
MoT / Ogero
Private (bitstream,
line sharing)
Limited Competition
(*) per household
2
The TRA has assessed the strengths and opportunities of
the telecommunications market in its reform and
liberalization process
Strengths
Fixed
Voice
Mobile
 Relatively good copper
infrastructure
 Regionally competitive
price per minute
Weaknesses






 Pent up demand for Mobile
services
 High Mobile revenues



Data




Relatively competitive
Lucrative segment
New wireless technologies
deployed
Pent-up demand for data
and internet services




De jure MoT monopoly
Low incentive to upgrade the
infrastructure and introduce
new technologies
Low penetration rate
Stagnant growth
High charges
Lag behind in terms of new
technologies
Low market penetration
Limited choice in mobile bundled
tariffs packages
Shortage of adequate
investments
Shortage in international
bandwidth
Access controlled by the MOT
High int’l bandwidth prices, and
non optimal allocation of
bandwidth among providers
Incomplete Regulatory framework
Opportunities
 High pent-up demand and
important growth potential
in all telecom markets
 Appropriate Regulatory
framework to attract
investors.
 Favorable social, cultural
and demographic
characteristics ( e.g.
consumer’s early adopters
of telecom services)
3
The TRA proposes the introduction of competition across all
telecoms markets while allowing LibanTelecom exclusivity over
some services for a limited period of time
2009
Mobile *
Network Operator
3
2010
2011
2012
2013
2014
**
Virtual Network MNVOs
PSTN/ Basic
Telephony
Network Operator
?
1
?
Reseller and VoIP
Access
Broadband
International
Gateway
National (core, metro
and access)
2
Voice and Data Facilities
Based Provider
3
Data Only Facilities
Based Provider
2
***
****
Voice and Data Resellers
Open licensing
Market Review
License Award
Notes
* The privatization of the mobile sector will depend on the regional and international financial markets conditions
** Two mobile operators and Liban Telecom
*** Two mobile operators and Liban Telecom
**** Two National Broadband Licenses, subject to CoM’s decision
4
TRA has made significant progress on the broadband roadmap
The TRA plans to issue two types of Broadband Licenses
National Broadband Licenses (NBLs) with:
 Rights to build/offer (fixed and spectrum based) Access, National Backbone and International
network/services
 Obligations to meet access and national backbone rollout conditions with minimum build for fiber
 Exclusivity period to interconnect new sites of other BL providers via its national backbone
 Broadband Licenses (BLs) :
 National or regional
 With or without spectrum
 Existing Data Service Providers continue to use their national Microwave backbone to backhaul existing sites
 BLs originally rely on the NBLs for new site connectivity
Broadband Deployment Timeline
Broadband
Policy
Statement
Spectrum
Re-farming
& RTU fees
Draft RFA for
Consultation
ROW & (including BB
Launch of
License)
Ducts
NBL
Decree
Auction
July 09
April 09
Q2 09
December 09
5
TRA plans to launch an international public auction in order to
establish across Lebanon, best in class core, Metropolitan, and
access networks
competition
Fixed MoT
Infrastructure
• Currently the Only provider of National Internet and
Data Transmission
• Needs major upgrade of National and International
capacity
• Allow CS/CPS whenever the market permits
National
Broadband
Licenses
• Provide a best in class alternative National
Networks (core, metropolitan and access),
enabling the National Transmission of Data
and provision of High Speed communications
Broadband
Licenses
• Unleash competition on the access level and
provide more choices to consumers ( including
by incumbent data service providers)
6
The National Broadband Licenses and the Broadband
Licenses will complement each other to provide
competition at all levels of the broadband value chain
Illustrative Sketches of the Core / Metropolitan and Access Networks
Core
Metropolitan
Access
Lebanon
Beirut
Ras Beirut
Ras
Tripoli
Bekaa
Beirut
Mazraa
Saida
Liban Telecom
National Broadband
Licenses
Achrafieh
Ras
User1
Beirut
Sin El Fil
User1
Beirut
Liban Telecom
National Broadband Licenses
Broadband Licenses for own
use only
User1
Liban Telecom
National Broadband
Licenses
Broadband Licenses
TRA has already issued interim license for Incumbent DSPs.
TRA has started a spectrum refarming exercise, which is intended t to free up some of the spectrum
currently used by DSPs and other operators and make it available to new entrants as well as incumbents in
a manner that allows optimal use of spectrum
7
The regulatory framework and the public consultation
process adopted by TRA aim at ensuring the success of
liberalization
Drafting Stage
Unbundling
Regulation
Draft Ready Stage
VOIP Policy Statement
National Roaming
Accounting Separation
Regulation
Consultation Stage
Spectrum
Refarming and
Packaging Plan
Final Review (TRA
Board)
Liberalization Roadmap
Broadband Policy
Statement
Improving FM
Broadcasting
Pricing Regulation
Universal Service
CS / CPS
Digital Migration
Strategy for TV
Broadcasting
Access to Information
Regulation
* Interconnection
Interim Pricing
Decision
Spectrum Pricing
Opinion
Issued
Significant Market Power
Regulation
Decisions:
• VSAT,
• Trial IPTV
• Spectrum trial
Allocation for MoT
/ OGERO
Type Approval
Regulation
Quality of
Service
Regulation
Interconnection
Regulation
Numbering
Regulation
National Numbering
Plan
Licensing
Regulation
Decision for
establishment of
call centers
* Decision approved by the
board, but will be issued
concurrently with the Mobile
Auction Award.
Spectrum
Management
and Licensing
Regulation
Consumer Affairs
Regulation
Lebanese
National
Frequency
Table
Lebanon's commitment
Bring the country back to the international telecommunications scene through market
liberalization
Reconnect
the Lebanese population with the world by building a thriving, innovative,
and competitive telecommunications market place, driven by a technologically advanced
infrastructure-based sector and offering services at internationally competitive prices and
quality
 Promote the interests of telecom Lebanese consumers in the market to make sure they
are getting good quality of service at affordable and competitive prices and that their right
to safe, secure and confidential access to telecommunications is safeguarded
TRA is providing a regulatory framework in line with international best practices
9