January 2000

Lebanon Update Memo

The following report outlines new developments in the past three months and the state of on-going developments.

Some news can be reported concerning these networks despite the fact that the monopoly position of the MPT forbids any provision of data and voice transmission by private means.

However due to a lack of proper control by the MPT, some large companies having branches in many locations on Lebanese territory have managed to implement proprietary networks using some segments of leased lines and on other segments microwave links of their own. The MPT seems to be tolerating these microwave links whenever it is not able to provide the link. This poses a technical problem when frequencies overlap, as no regulatory authority is managing the distribution of frequencies and overlooking the implementation.

Two companies that are launching tests to experiment on the commercial use of these frequencies are reporting problems due to damaging interference with military frequencies. We will further pursue our investigation in this respect though it seems difficult, we think, to obtain accurate information due to the fact that part the equipment installed is not totally legal.

A press release by Sodetel (www.sodetel.net.lb) (a mixed capital company where 50% belongs to the Lebanese State, 40% to France Telecom and 10% to Telecom Italia) is announcing a proprietary network to be launched by the end of 1999. Libanpac which is a national network for data transmission X25 will be offering telecom link services among different branches located all over the Lebanese territory. Sodetel is also announcing the upgrading of its Internet services through an international link right to the backbone of France Telecom at Bagnolet in France.