Telecommunications Liberalization and Regulatory Framework Re-farming for Broadband Lebanon Dr. Imad Y. Hoballah Commissioner, Board Member, Head of Telecommunications.

Slides:



Advertisements
Similar presentations
Telecom Regulatory Authority of India An introduction.
Advertisements

Equitable Access to ICT The EAC Experience East African Community.
SADC Forum on Analogue to Digital Migration Workshop Present Emerging and Future Broadband Technologies and potential uses 27 – 31 August, Mozambique 2012.
Policy and Regulatory Challenges – Technology Providers View February 14 Challenges for Successful Implementation of ICT Projects Challenges for Successful.
Review of Type II Interconnection Policy Press Conference 6 July 2004.
TRA Roadmap for the Liberalization of Telecommunications Broadband Workshop In cooperation with the Partnership for Lebanon January 17, 2008 Beirut, Lebanon.
TRA's Telecommunications Liberalization Roadmap Dr. Kamal Shehadi Chairman/ CEO Telecommunications Regulatory Authority March 11, 2009 UN-ESCWA, Beirut,
Towards a Unified Arab Charter Internet: Regulations and Communications Dr. Kamal Shehadi Chairman/ CEO Telecommunications Regulatory Authority February.
1 Dr. Kamal Shehadi, Chairman and CEO Telecommunications Regulatory Authority of Lebanon Telecom Finance- London 27 th January 2009 Building the Telecom.
TRA Strategic Plan April 25, The TRA Board was appointed on February 21, 2007, and the TRA began its regulatory work as of March 2007.
Confidential 1/20 Role of the TRA in the introduction of IPv6 in Lebanon Broadband Liberalization Agenda Dr. Kamal Shehadi President TELECOMMUNICATIONS.
Assistance to the Establishment of the Telecommunications Regulatory Authority in Lebanon SCR-E/111668/D/SV/LB Eurostrategies The Telecommunications Regulatory.
Australian Mobile Telecommunications Association Productivity - Connectivity - Mobility Mobile Broadband A Key Economic Driver.
Acting Chairman and CEO Head of Telecommunications Technologies Unit Telecommunications Regulatory Authority The Importance of Regulation for Investment.
Regulatory Requirements for Broadband Lebanese Broadband Stakeholders’ Group Workshop TELECOMMUNICATIONS REGULATORY AUTHORIT Y (TRA), LEBANON January 2010.
LIBERALISATION ERA FOR INDIAN TELECOM REGULATION INDUSTRY WORKSHOP by Rakesh Agrawal, ITS (Retd,) Director, CMAI Former Advisor Technology, DOT Government.
Telecommunications Regulatory Authority Achievements and challenges In light of Telecommunications Law 431/2002 Mahassen Ajam Board Member, Head of Information.
Broadband to everybody!? Torstein Olsen Director Norwegian Post and Telecommunications Authority LLU Conference, Bucharest, 5 July 2005.
UK Spectrum Management Strategy: tomorrow’s challenges today Chris Woolford Director, International Spectrum Policy Radcomms 2014.
Ireland’s Broadband Performance and Policy Actions January 2010.
THURAYA Proprietary Information1 The Role of Satellite Telecommunications in Bridging the Digital Divide Mohamed Al Ghanim Senior Manager Product Management.
ACMA Spectrum Strategies 2 March 2006 Optus Networks Perspective Wireless Spectrum Strategies 2006 Peter FERRIS General Manager, Technology and Planning.
Importance and development of broadband access in Lithuania Paulius Vaina Communications Regulatory Authority of the Republic of Lithuania ITU Regional.
ITU-T Informal Forum Summit San Francisco, July 2003 Global Standardisation Key to the success of Third Generation Mobile A UMTS Forum industry perspective.
Cost sharing models of NGN rollout in rural or remote areas BEREC-EaPeReg-REGULATEL-EMERG Summit Barcelona, 2-3 July 2015.
ICT Policy in Azerbaijan
Program for Development of Broadband Internet Access in Republic of Moldova and results of its implementation.
TMitTI 1 © Sakari Luukkainen Content Previous technology cycle Analog Modems ISDN Technology cycle of fixed broadband Case ADSL Case DOCSIS Conclusion.
International Telecommunication Union Committed to Connecting the World The World in 2009: ICT Facts and Figures Jaroslaw K. PONDER Strategy and Policy.
International Seminar on ICT Policy Reform and Rural Communication Infrastructure, Keio University, Japan Rethinking telecom reform model: the case of.
Radio Frequency Spectrum Management in Indonesia - 3G/IMT 2000, TV Digital and other Wireless Activities And Issues - 3G/IMT 2000, TV Digital and other.
The ICT Sector in Zambia Presented by: Ministry of Communications and Transport Overview & Investment Perspective.
By Omkar KiraniSridhara Chaitanya Sannapureddy Vivek Gupta 1.
Development of Broadband in Thailand TCT Seminar on “Future Communication Technologies” January 29, 2010 Miracle Grand Hotel, Bangkok Dr Supot Tiarawut.
1 COMMUNICATIONS REGULATION COMMISSION Republic of Bulgaria MOBILE BROADBAND EUROPE – BULGARIAN EXPERIENCE IN THE DEVELOPMENT OF THE MOBILE BROADBAND ACCESS.
ITU Cross Regional Seminar on Broadband Access for CIS, ASP and EUR Regions Chisinau, Moldova, 4-6 October 2011 Policy Implication for Attaining Sustainable.
“Broadband Projects for Greece” CHRISTOS MOSCHONAS Telecom Projects Director Information Society S.A. “Speeding up NGN ubiquity : a pillar for digital.
IMPLEMENTING THE WSIS ACTION PLAN NAIROBI, March 2004 Jose Toscano Director, External Affairs International Telecommunications Satellite Organization.
National Communications Commission 2006 International Digital Cities Convention - Broadband Policies and Regulatory Reform - NCC Chairman, Dr. Su Yeong-Chin.
Conselheiro José Leite1 JOSÉ LEITE PEREIRA FILHO Member of the Board PORTO SEGURO, BA 4 JUNE 2001 ITU-T SEMINAR Multimedia in the 21st Century.
Internet Access in Research and Educational Institutions in Africa.
Liberalization of Telecommunications in Europe Pál Belényesi 27 October 2006 Verona.
Case study of a broadband infrastructure investment project approved by DG COMP RAIN project in Lithuania Vytautas Tvaronavicius Public Company "Placiajuostis.
National Communications Commission W H Liang Senior Engineer National Communications Commission Jan. 12, 2007 The Third Generation Mobile Communications.
Local Loop Unbundling PRESENTATION TO THE PORTFOLIO COMMITTEE 6 th JUNE 2007.
Internet Policy Day 3 - Workshop Session No. 5 The impact of telecomms regulation Prepared for CTO by Link Centre, Witwatersrand University, South Africa.
Directorate General for Energy and Transport European Commission Directorate General for Energy and Transport Regulation of electricity markets in the.
Conditions for the entry to electronic communications market in Montenegro Pavle Mijušković,B.Sc.E.E. manager for Internet and IP based services SEE Business.
Brief History of the GSMA
2.Global trends and underlying forces determining the progress on the world IC sector 2.1. Reforms of IC sector - evolution of legislation and regulations.
Providing Seamless Connectivity in E-commerce
1 WiMAX and the Canadian Radio Spectrum April 28, 2006 Angela Choi Communications Engineer Pacific Region Industry Canada
1 TINF 2010 Tuesday 30 November 2010 Present and Future Regulation of Electronic Communications Vesa Terävä European Commission Information Society & Media.
Law Seminars International Spectrum Management Conference NTIA: SPECTRUM POLICY FOR THE 21 st CENTURY The Federal Government Spectrum Management Perspective.
International Telecommunication Union ITU-T Workshop All Stars Access Network Geneva, 2-4 June 2004 Session 7: Regulatory issues, their status and resolution.
Amman October 1-2, 2003 Presentation Evolution of Saudi Telecom During Sector Reform 3 rd Annual Private Sector Cooperation Meeting in the Arab Region.
Inês Nolasco Senior Regulatory Affairs Manager European Competitive Telecommunications Association.
Developments and the regulatory environment in the electronic communications market Rivo Mets.
Oman TRA – Telecom Regulation and Law Forum Mohamed El Bashir Technical Affairs Dpt. Manager Access Disputes and Open Access 9 February 2015.
Fondazione Ugo Bordoni Evolution of Wireless Access systems Maria Missiroli.
Liberalisation and regulation in the telecommunication sector: Theory and empirical evidence Week 3 The European Regulatory Framework for the Telecommunication.
SPECTRUM IN TRANSITION
National Numbering Plan Of Sultanate Of Oman (NNP)
ERERA AND ECOWAS ELECTRICITY MARKET DEVELOPMENT AND REGULATION
Status and Real Potential
Internet Interconnection
progress of the water reform in bulgaria
SACF Comments on the ECA Amendment Bill B
PRESENTATION OF MONTENEGRO
5G (IMT-2020) Enabling Digital Services
Presentation transcript:

Telecommunications Liberalization and Regulatory Framework Re-farming for Broadband Lebanon Dr. Imad Y. Hoballah Commissioner, Board Member, Head of Telecommunications Technologies Unit Telecommunications Regulatory Authority (TRA) Lebanon

Outline 3- Nov TRA Lebanon I.The Telecom Market Today – The Urgent Need for Re-from II.Lebanon’s Telecom Reform III.Current Broadband Market IV.Broadband Spectrum Re-farming V.Next Steps and the Way Forward

3 The Lebanese fixed and mobile services markets have been stagnant and the data and internet services market have been constrained 3 Fixed 60% 1 State Owned SP Monopoly Fixed 60% 1 State Owned SP Monopoly Mobile 30%* 2 State Owned SPs Monopoly Mobile 30%* 2 State Owned SPs Monopoly Broadband ADSL:6%*, 8 Priv. Using MOT LL, Lim. Comp. Internet: 32%, 16 Priv. SPs. Competitive Broadband ADSL:6%*, 8 Priv. Using MOT LL, Lim. Comp. Internet: 32%, 16 Priv. SPs. Competitive Strengths Weaknesses  Relatively good copper infrastructure  Regionally competitive price per minute  Relatively good copper infrastructure  Regionally competitive price per minute  No competition  No incentive to upgrade the infrastructure and introduce new technologies  Low penetration rate  Stagnant growth  No competition  No incentive to upgrade the infrastructure and introduce new technologies  Low penetration rate  Stagnant growth  Pent up demand for mobile services  High mobile revenues per user  Pent up demand for mobile services  High mobile revenues per user  No competition  Lag behind in terms of new technologies (e.g. MMS, EDGE, 3G)  High connection and subscription charges  High per minute prices  Limited choice in mobile packages, Low QoS  Saturated mobile network /no upgrade  Low Penetration  No competition  Lag behind in terms of new technologies (e.g. MMS, EDGE, 3G)  High connection and subscription charges  High per minute prices  Limited choice in mobile packages, Low QoS  Saturated mobile network /no upgrade  Low Penetration  Relatively competitive  Lucrative segment  New wireless technologies deployed  Pent-up demand for data and internet services  Relatively competitive  Lucrative segment  New wireless technologies deployed  Pent-up demand for data and internet services  ADSL services were recently launched  Access is hindered by incumbent operator  Until recently, high international bandwidth prices  Moving towards certainty with regulatory framework  ADSL services were recently launched  Access is hindered by incumbent operator  Until recently, high international bandwidth prices  Moving towards certainty with regulatory framework International Access 4 4  Future expansion Plans ( I-ME-WE)  No competition  No transparent allocation spectrum  Limited capacity  High prices for retail  No competition  No transparent allocation spectrum  Limited capacity  High prices for retail 3- Nov TRA Lebanon – Existing Market * % Households

4 Penetration of telecommunications services in Lebanon between 2000 and 2007 has increased very slowly Source: Globalcomms, operator data, ITU, Arab Advisors Group 3- Nov TRA Lebanon – Existing Market

5 The telecommunications market is still underdeveloped compared to other countries Fixed Line Penetration vs. GDP per Capita (2005) PSTN Penetration GDP per Capita (USD/ Year) Mobile Penetration Internet Penetration Mobile Penetration vs. GDP per Capita (2005) Internet Penetration vs. GDP per Capita (2005) GDP per Capita (USD/ Year) Sources: Economist Intelligence Unit, interviews with industry 3- Nov TRA Lebanon – Existing Market

6 A typical internet user in Lebanon will spend six to eight times more than users in similar countries due to low download ceilings Source: Operators Websites 3- Nov TRA Lebanon – Existing Market

7 The penetration of DSL services in Lebanon is the lowest in the region, due in part to a late start Source:Operators Websites 3- Nov TRA Lebanon – Existing Market

8 Only a limited range of applications and services is offered in Lebanon Estimation of bandwidth requirements for the UK households:  By 2008, demand for the most bandwidth intensive households could reach 18 Mbps downstream and 3 Mbps upstream  By 2012, the bandwidth demand for the most intensive bandwidth households could reach 23 Mbps downstream and 14 Mbps upstream Source: New Zealand National Broadband Strategy, Broadband Stakeholder Group UK Teleconference Online games MP3 streaming Video Conference Multiplayers game Video Streaming Video on Demand Multi-Channel TV Quality Video Streaming 5 second CD download Web Surfing Virtual Reality VOIP Telepresence Indicative Application Bandwidth Demand (Mbps) Current Limit on Residential Broadband 3- Nov TRA Lebanon – Existing Market

9 Outline 3- Nov TRA Lebanon I.The Telecom Market Today – The Urgent Need for Re-from II.Lebanon’s Telecom Reform III.Current Broadband Market IV.Broadband Spectrum Re-farming V.Next Steps and the Way Forward

10 The GoL, recognizing the need for reform, has committed to open the telecom sector to competition and has recognized it as an important lever for economic development  “… there is a need to reduce the cost of production resulting mainly from unreliable supply of electricity, the high cost of telecommunication …”  “The Government of Lebanon will implement reforms in order to improve competitiveness and reduce the cost of doing business in Lebanon…”  “The government will seek a greater private sector role in sectors such as telecommunications…” International Conference for Support to Lebanon” - Paris III Conference البيان الوزاري للحكومة 2008 حكومة دولةالرئيس فؤاد السنيورة  (§ 56 )إ ن قطاع الاتصالات هو محرّك أساسي للاقتصاد الوطني وهو يسهم في تعزيز الإنماء المتوازن. ولبنان يعمل على تقديم رؤية لهذا القطاع تهدف إلى بناء مجتمع المعلوماتية من أجل مواكبة ثورة الاتصالات العالمية وريادتها في المنطقة، والحكومة اللبنانية تلتزم في هذا السياق بتحرير قطاع الاتصالات وفتح السوق لاستثمارات القطاع الخاص والمنافسة وحماية حقوق المستهلك.  The TRA is charged with promoting competition in telecommunications (Telecommunications Law, Art. 5.1(C)).  The Law provided for the liberalization of the telecommunications market by privatizing state-owned telecommunications entities and opening the market to private sector investments and competition. Telecommunica tions Law 431 / 2002 The GoL Governmental Declarations in 2005 and 2008 commit the Council of Minister (CoM) to the liberalization of telecommunications 3- Nov TRA Lebanon – Liberalization Benefits

11 Reform of the telecom sector entails the restructuring of the market, the establishment of an independent regulator, and a top notch regulatory framework Competitive Market Structure Competitive Market Structure Independent Regulatory Authority Clean and Stable Regulatory Framework Clean and Stable Regulatory Framework Reform and Liberalization of the Telecom Sector 3- Nov TRA Lebanon – Regulatory Environment

12 The Telecommunications Law 431 requires the creation of a proper structure for a competitive telecommunications market Regulator Operators  MoT: policymaker, regulator and service provider  CoM: Arbitrary regulatory role (e.g. issuing all licenses)  No formal regulatory regime Before Telecom Law 431 After Telecom Law 431 Ministry of Telecommunications MoT Policymaker  Set the general guidelines for telecom policy  Recommend to CoM the award of some individual licenses (mobile/fixed, int’l voice, UMTS)  Review and propose to CoM  Pricing of Radio Frequency  TRA annual budget  Approve TRA budget & other TRA documents as per Law 431 TRA Regulator  Develop/implement regulations  Award telecom licenses  Ensure competition and prevent anti-competitive behavior  Manage on behalf of GoL radio frequencies Operators Incumbents & New Entrants  Provide telecom services to the public  Install own and manage telecom networks and facilities  Abide by TRA regulations, decisions and licenses Policymaker Nov TRA Lebanon – Regulatory Environment

13 As a first step in assuming its duties as per the Telecom Law (Law 431), the TRA has defined its mission statement and objectives Mission Statement To establish a regulatory environment that enables a competitive telecommunications market to deliver state-of-the-art services at affordable prices to the broadest spectrum of the Lebanese population إيجاد بيئة مُنظِمة من شأنها أن تساعد سوق الاتصالات في تقديم آخر ما توصلت إليه التكنولوجيا في مجال خدمات الاتصالات بأسعار تنافسية، ومعقولة، وعلى أوسع نطاق ممكن للمواطن اللبناني وللشركات اللبنانية. TRA Prerogatives ( Non-exhaustive list)  Issue Regulations and draft Decrees (Art 5)  Liberalize the market and take any necessary measure to reach a competitive market (Art 30)  Manage Radio Frequency, Interconnection agreements, numbers, equipment import, etc.. (Art 29)  License telecommunications service providers and radio frequency bands (Art 20)  Resolve disputes between service providers (Art 43) 3- Nov TRA Lebanon - Mission

14 Major steps of the Liberalization Roadmap Mobile Market  Executed an MOU with the Higher Council for Privatization (HCP) to ensure smooth privatization and licensing  Launched the Mobile Privatization and Licensing Tender Process in November 2007:  Finalized the Financial Model for the license valuation  Developed the Online Data Room and answered bidders’ Questions  Prepared financial, legal and technical due diligences and conducted site visits  Finalized the RFA  Drafted the Mobile License  Prepared the draft Sale and Purchase Agreement  Executed an MOU with the Higher Council for Privatization (HCP) to ensure smooth privatization and licensing  Launched the Mobile Privatization and Licensing Tender Process in November 2007:  Finalized the Financial Model for the license valuation  Developed the Online Data Room and answered bidders’ Questions  Prepared financial, legal and technical due diligences and conducted site visits  Finalized the RFA  Drafted the Mobile License  Prepared the draft Sale and Purchase Agreement Broadband and ISP/ DSP Market  Re-issued licenses for the Internet Service Providers (ISP’s) and Data Service Providers (DSP’s) in accordance with Law 431  Authorized the use of new services including IPTV  Issued a Re-farming plan for Consultation – Ready for different regulations  Re-issued licenses for the Internet Service Providers (ISP’s) and Data Service Providers (DSP’s) in accordance with Law 431  Authorized the use of new services including IPTV  Issued a Re-farming plan for Consultation – Ready for different regulations TRA Lebanon - Competitive Market Structure Creating Liban Telecom (LT) Capacity Building - Building the Institution and Transitioning Responsibilities Regulatory Framework 3- Nov

15 REGULATORY FRAMEWORK Regulations that are needed to ensure the success of liberalization have been put in place Issued Type Approval Regulation SMP Regulation Interconnection Regulation Decisions: VSAT Trial IPTV Spectrum trial Allocation for MoT / OGERO Decisions: VSAT Trial IPTV Spectrum trial Allocation for MoT / OGERO Draft Ready Stage Spectrum Pricing Opinion Broadband Policy Statement VOIP Policy Statement National Roaming Interconnection Interim Pricing Decision Drafting Stage Accounting Separation Regulation Unbundling Regulation Spectrum Refarming Guidelines Spectrum Management and Licensing Regulation Consultation Stage Administering and Implementing the NNP Final Review (TRA Board) Consumer Affairs Regulation Lebanese National Frequency Table National Numbering Plan Liberalization Roadmap Licensing Regulation Licensing Regulation Pricing Regulation Quality of Service Regulation Regulatory Framework for establishment of call centers 3- Nov TRA Lebanon - Clean and Stable Regulatory Framework

16 Draft Liberalization Roadmap proposes introducing competition across all telecom markets while allowing LibanTelecom some exclusivity over some services MobileNetwork Operator Virtual Network MNVOs PSTN/ Basic Telephony Network Operator Reseller Broadband Access National International Access Facilities Service Provider Reseller 3 1 *** 5+ ** * Liban Telecom expected ** TRA is still considering the appropriate number of NBLs to issue *** Two for the mobile licenses, one for Liban Telecom and two others for the NBLs for data traffic only License Award Open licensingMarket Review Notes * 3- Nov TRA Lebanon – Liberalization Roadmap

17 LIBAN TELECOM The TRA views the creation, corporatization, and privatization of Liban Telecom as a major step in the history of the telecom sector and a central component of liberalization and future growth Sale of up to 40% to a strategic partner Establishment Plan for Liban Telecom Full sale of Liban Telecom Shares! Corporatization Maximum Two Years TRA plan for Liban Telecom’s licensing and exclusivity rights as proposed in the Liberalization Roadmap Mobile License Fixed License LT’s establishment End 2008*- TBD*TBD* End of exclusivity on international public voice services End of exclusivity on basic telephony services Undefi ned time 3- Nov TRA Lebanon – Liban Telecom

18 MOBILE The Mobile Auction was suspended in January 2008, but could be held within 8 weeks from a GoL decision  Most of the preparatory work for the auction has been completed:  Executed an MOU with the Higher Council for Privatization (HCP) to ensure smooth privatization and licensing  Launched the Tender Process for privatization and licensing of mobile in November 2007:  Finalized the Financial Model for the license valuation  Developed the Online Data Room and answered questions submitted by bidders  Prepared financial, legal and technical due diligences and conducted site visits  Finalized the RFA  Drafted the Mobile License  Prepared the draft Sale and Purchase Agreement ( SPA)  Most of the preparatory work for the auction has been completed:  Executed an MOU with the Higher Council for Privatization (HCP) to ensure smooth privatization and licensing  Launched the Tender Process for privatization and licensing of mobile in November 2007:  Finalized the Financial Model for the license valuation  Developed the Online Data Room and answered questions submitted by bidders  Prepared financial, legal and technical due diligences and conducted site visits  Finalized the RFA  Drafted the Mobile License  Prepared the draft Sale and Purchase Agreement ( SPA) Mobile Auction Launch: RFA published Mobile Auction Launch: RFA published January 2008 Licensing Process Freeze November 2007 to+ 2 (Mths) GoL Decision to Re launch Process Auction – Announcing two winning bidders to to+ 5 (Mths) Handover completed Crucial phase that should be completed smoothly and in the specified time Handover completed Crucial phase that should be completed smoothly and in the specified time Technical & Pre-Auction Financial Bids Due to+ 3 (Mths) 3- Nov TRA Lebanon - Mobile

19 BROADBAND TRA's objective is for Lebanon to become a global leader in broadband communications within 10 years What is Broadband? Broadband refers to a wide range of technologies supporting the delivery of innovative interactive services, equipped with an always-on functionality, providing enough local bandwidth and capacity allowing the simultaneous use of voice, data, and video services, and MOBILE Residential Services in 2013 Business Services in 2013 For around US$40/month at least 10Mbps speed triple/quad play services: 1.High speed Internet – surfing and data transfer 2.Digital Entertainment – video 3.Voice Communications – voice 4.Mobility For around US$40/month at least 10Mbps speed triple/quad play services: 1.High speed Internet – surfing and data transfer 2.Digital Entertainment – video 3.Voice Communications – voice 4.Mobility For around US$ 600/month at least 1Gbps speed triple/quad play services: 1.High speed Internet and data transfer 2.Digital Entertainment – video and teleconferencing 3.Voice Communications – voice 4.Mobility For around US$ 600/month at least 1Gbps speed triple/quad play services: 1.High speed Internet and data transfer 2.Digital Entertainment – video and teleconferencing 3.Voice Communications – voice 4.Mobility 3- Nov TRA Lebanon - Broadband

20 Outline 3- Nov TRA Lebanon I.The Telecom Market Today – The Urgent Need for Re-from II.Lebanon’s Telecom Reform III.Current Broadband Market IV.Broadband Spectrum Re-farming V.Next Steps and the Way Forward

21 Broadband Statistics - Middle-East BB penetration in Lebanon is very low – room to expand Source: ITU data Sept/2007www.internetworldstats.com/middle.htm Notes: Some figures are probably dated since for example UAE is known to have reported double the penetration by mid Nov Re-farming for Broadband Lebanon

22  Existing broadband penetration in Lebanon is low by international benchmark Broadband Statistics – Worldwide Lebanon is still 4 times lower than the Average 3- Nov Re-farming for Broadband Lebanon

23 Current Internet Status in Lebanon Internet penetration increased from 6% to 25% 3- Nov Re-farming for Broadband Lebanon

24 Broadband Background - Lebanon 3- Nov  For 10 years the MoT partnered with the private sector to provide data connectivity and internet services  Spectrum was being authorized on an annual basis – no clear licensing policy  Limited ADSL services despite the fast growth with close to 60K-70K subscribers served by the incumbent operator/private sector. The incumbent (Ogero) is the only fixed operator with ~70% ADSL market share on the local loop. Unbundling and Bit- Stream models provided. Five private DSPs contributing to ~30% of market share  Wireless BB is provided by 4 private DSPs with end-to-end wireless access and backhauling using microwave – no fiber  Coverage ranging from national in the FWA corporate market to limited urban coverage for personal broadband internet market with “3” players offering portable nomadic broadband in a multiplayer ISP-DSP scenario  “17” ISP’s, “5” DSPs, and “1” fixed line operator, and “2” mobile (GPRS & limited EDGE) constitute the regulated data & internet market players  Non-regulated market players (incl. WISPs) & illegal local cable operators serving residential users using ISM 2.4 GHz & some licensed spectrum bands  Mobile broadband (3G) is not yet available Re-farming for Broadband Lebanon

25 Existing DSPs occupy most of the available valuable spectrum  Spectrum used by DSPs include ( same DSPs have large portions of the spectrum ):  1.9GHz: TDD UMTS band allocated to provide personal broadband using proprietary technology (I-burst)  2.2GHz (legacy TDMA PMP systems since 1999 but being migrated since 2003)  GHz: IMT Prime spectrum; allocated by MoT for FWA (to evacuate)  GHz: Prime Spectrum for FWA and BWA including WIMAX  GHz: Used for some FWA without being authorized  5GHz used heavily by unlicensed WISP’s and some DSPs  24-26GHz FWA high capacity PMP backhauling  Limited Residential Broadband Wireless coverage in major cities & GBA  Lack of initiatives to ensure rural access to broadband wireless  A number of unlicensed wireless ISPs serving residential & SOHO internet markets  Occasional interference on some bands from cross boarders and operators and unlicensed WISPs 3- Nov Re-farming for Broadband Lebanon

26 Broadband Wireless Spectrum – 2.5GHz Band Status

27 Outline 3- Nov TRA Lebanon I.The Telecom Market Today – The Urgent Need for Re-from II.Lebanon’s Telecom Reform III.Current Broadband Market IV.Broadband Spectrum Re-farming V.Next Steps and the Way Forward

28 BROADBAND Lebanon has to improve its telecom infrastructure and open it to competition Fixed MoT Infrastructure: currently the only provider of national internet and data transmission, however needs major upgrade of national and international capacity. National Broadband Licenses: Provide a best in class alternative national networks (core, metropolitan and access), enabling the national transmission and provision of high speed communication Broadband Access Licenses: Unleash competition on the access level and provide more choices to consumers ( e.g. incumbent data service providers) The TRA proposed plans to issue licenses (through an international public auction) in order to establish across Lebanon best in class core, metropolitan and access networks : 1.Two new NBLs (+ Liban Telecom ) 2.Unrestricted number of Broadband Access Licenses (for existing DSP and new licenses) taking into account limitations in the availability of spectrum resource The TRA proposed plans to issue licenses (through an international public auction) in order to establish across Lebanon best in class core, metropolitan and access networks : 1.Two new NBLs (+ Liban Telecom ) 2.Unrestricted number of Broadband Access Licenses (for existing DSP and new licenses) taking into account limitations in the availability of spectrum resource Therefore Competition 3- Nov TRA Lebanon - Broadband

29 BROADBAND Spectrum The TRA is paving the way to meet a growing spectrum demand Spectrum Planning and Refarming Spectrum Planning and Refarming Planning Objectives  Efficient spectrum distribution - Optimize the use of spectrum  Introduce new national and regional operators to the market  Open gates for new technologies and services  Reserve spectrum for future needs taking into consideration technology evolution  Define frequency bands and bandwidth that can be offered for TV distributors  Maintain a smooth migration plan from analog to digital TV transmission  Secure minimum committed spectrum to the existing operators Spectrum Re-farming  Re-farming plan for the bands 1.9, 2.3, 2.5, 3.5, 5 and 26 GHz is studied with primary focus on the 2.5 GHz band that has been designated as extension band to IMT and on the 3.5 GHz band which may considered in future as an extension to IMT  Auction model for broadband networks is being studied by the TRA in order to realize goals defined in the liberalization roadmap by introducing new operators (2NBLs, 5-6 BAL)  Re-farming for the 12 GHz and 26 GHz bands will be studied as a solution to the cable TV distributors 3- Nov TRA Lebanon - Broadband

30 Questions to Address – Planning What are the policies? Re-farming for Broadband Lebanon  Policies  Government  Telecommunications  TRA  Broadband, Spectrum Policy, Re-farming, Infrastructure and Rights of Way (RoW)  Broadband Policy and Licenses  Objectives  Fiber vs. Wireless  Mobile vs. Fixed  Types of Licenses  Types of Services  Number of Licenses/Packages (short and long term)  National vs. Regional Licenses/Packages  Obligations Coverage/ Deployment

31 Questions to Address – Planning How to treat existing operators?  Treatment of existing operators  Basis for decisions (legal, other)  Licenses (type, renewals, and transition)  Bands and spectrum (Smin: number of bands, size, price, issues)  Continuity of services - Ensuring continuity of services/minimum interruption  Transition and Migration - Schedule, dependencies, consumer services, cost,  Interim period - duration per band, per operator, and per service  Pricing (revenue sharing, auction, auction derivatives, AIP, averages, benchmarking)  Technology neutrality vs. ensuring coexistence conditions  Size of the spectrum per operator (DSPs, NBL, etc.)  Auction(s) - sequencing, design, number, timing, dependencies (LT, Mobile, etc.) Re-farming for Broadband Lebanon 3- Nov

32 Spectrum Management Objectives  Enable liberalization of, and competition for, telecommunications (including radio communications) services and equipment  Boost economic growth, create employment, promote general welfare  Ensure transparency in spectrum award process ensuring best value  Reallocate spectrum to meet new regulations while minimizing impact on services and consumers  Support national security and defense needs  Enable the realization of public policy objectives on enviornmental safety (including emergency services), cultural (including broadcasting), social and economic development  Harmonize spectrum use with international developments & ITU-R  Stimulate technological innovation and competitiveness 3- Nov Re-farming for Broadband Lebanon

33 Spectrum Milestones The TRA has had to pave the way  A Spectrum Policy harmonizing bands & national interest according to best practices/ITU Spectrum Policy. Guidelines, Handbook National Frequency Allocation Table (LNFT-Final version issued) Spectrum pricing in the different bands (regulations, auctions, auction-related, AIP,..)  Re-farming for bands of interest ( BWA plan under consultation) Re-farming bands Assigned/allocated spectrum per package (minimum, maximum, short and long term) Reserved spectrum per band  Migration plan from Analog to Digital TV broadcasting (consultation soon)  Clearing as much spectrum sub 6GHz to be offered for new services or reserved  Develop and implement spectrum licensing regulations - Universal, Technology, infrastructure, service, duration, obligation, treatment of licensing requests (new, renewals)  Establish Enforcement & Inspection Regime - regulations, monitoring, inspection, enforcement, illegal operators & cable providers, etc.  Develop position for Lebanon in ITU activities and working parties  Build capacity and resources 3- Nov Re-farming for Broadband Lebanon

34 TRA decided to propose a re-farming plan for the most important broadband bands  Issue new licenses for long periods and reserve spectrum for future use  Establish a Re-Farming Plan for important bands like 2.5 GHz and 3.5 GHz in order to be auctioned for new technologies and services  Technology neutrality principle where possible while ensuring:  Interference management and compliance to technical conditions is met (challenge )  Equivalent services can be delivered using different technologies. Let the market decide which services to deliver to consumers  Use spectrum ceilings to ensure a minimum of 3 players in the market  Make a distinction in a short term cap (auction period) and long term cap (after M&A)  Give operators sufficient time for transition into the new situation  Reserve sufficient spectrum for future use (LTE)  Keep the auction design and the auction process as simple as possible  Minimize the complexity of the assignment process as much as possible. 3- Nov Re-farming for Broadband Lebanon

35 The TRA proposed a clear licensing framework to accelerate Broadband Lebanon  Substantial investments in broadband access and fiber optic backbones are required to accelerate broadband deployment  The Liberalization Roadmap outlines issuing licenses in 2009 with a view to establishing across Lebanon – in the cities/rural areas – access to high speed core, metropolitan & access networks  National Broadband Licenses - services barring Liban Telecom exclusivity  Up to 2 licenses to be issued with fixed (fiber) and wireless access capabilities  Build own infrastructure to offer BB services using any technology for a core network (linking nodes in the main cities), metropolitan networks (covering towns and cities), and access networks (i.e., connecting metro and core networks to points of presence (POPs)  Include sufficient amount of ‘access’ spectrum, and int’l gateway rights  Roll-out coverage obligations to provide national coverage over most of the territories  Universal Service Obligation!!  Access obligation is modest due to competition/BALs but core obligation is more stringent  Broadband Access Licenses (National and Regional)  Build access infrastructure  Offer customers the same telecommunications services as the NBLs  Some would be with radio spectrum bands to deploy wireless access technology  This can trigger investments in infrastructure and actual deployment  Competition will help speed up deployment, improve service and reduce prices 3- Nov Re-farming for Broadband Lebanon

36 Outline of broadband spectrum packaging Maximum spectrum (Smax) Short Term: 30 MHz on 2.5 GHz and 35 MHz on 3.5 GHz Long Term:, when we expect that the reserved spectrum will be made available, to 60 MHz on 2.5 GHz and 56 MHz on 3.5 GHz, with effect not before 2 years following the NBL and BAL auctions 3- Nov Re-farming for Broadband Lebanon 2.5 GHz3.5 GHz Spectrum available in principle190 MHz196 MHz Spectrum for NBL each20 MHz21 MHz Total spectrum for 2 NBL40 MHz42 MHz Spectrum for Smin-84 MHz Mobile operators (each 10 MHz)10 MHz Total spectrum for mobile operators30 MHz Reserve28 MHz Guard Bands10-15 MHz7 MHz Reserved for future use50 MHz Available for BAL auction 55-60MHz35MHz (National + Regional)

37 Outline 3- Nov TRA Lebanon I.The Telecom Market Today – The Urgent Need for Re-from II.Lebanon’s Telecom Reform III.Current Broadband Market IV.Broadband Spectrum Re-farming V.Next Steps and the Way Forward

38 Next Steps Finalize Consultation Issue Final Re-farming policy Issue BB Policy Issue RFA Run Auctions 3- Nov TRA Lebanon – TRA Commitments Auction Consultation Announce Time Frame Run Auction Migration to interim frequency plan and reduce spectrum usage Requirement on current DSP’s to clear spectrum used in Reserved Band 6 months from announcement date End of Interim Period NBL Auction Oct-08Nov-08Feb-09May-0931-Oct GHz Spectrum Auction Oct-08Nov-08May-09Jul-0931-Oct GHz Spectrum Auction Oct-08Nov-08May Oct-2009