“I tried downloading both WhatsApp and WhatsApp Business, but I never received the verification codes,” said Rima, who recently purchased a sim card from Alfa.
Subscribers to Lebanon’s two mobile service providers, Alfa and Touch, have been experiencing difficulties receiving verification codes via SMS—codes that are crucial for activating accounts on platforms like WhatsApp, X (formerly Twitter), and others.
“I contacted Alfa, but I didn’t get any response. I ended up going to a phone repair shop, where the ‘expert’ asked me to leave my phone with them for 24 hours so they could either contact WhatsApp or find a workaround to fix the issue,” she explained.
“I was charged $40 for the failed attempt,” she added.
Handing over your device to phone repair shops or resorting to unreliable, high-risk methods to address technical issues can severely compromise personal data and sensitive information. Users should never feel pressured into accepting such measures.
Similarly, Rita, another user who faced the same issue, said she was unable to find a SIM card that allows her to activate the two-step verification feature through SMS.
Shops are now reselling SIM cards linked to phone numbers previously held by people who left Lebanon. The problem is that these users still have their WhatsApp accounts registered to their old Lebanese numbers, which creates confusion and could potentially allow the new SIM card owner to access the previous owner’s WhatsApp account.
According to Abed Kataya, Media Program Manager at SMEX, the root of the problem is disputes between Lebanon’s telecom companies, Alfa and Touch, and the contracted service providers responsible for managing A2P (Application-to-Person) messaging services.
Kataya emphasized that these issues persist despite the Audit Bureau’s calls to hold new bids and have these service providers settle their outstanding debts to Alfa and Touch.
The Application-to-Person (A2P) messaging service allows global applications to send messages, such as verification codes, directly to users, a feature that has become integral in light of increased reliance on mobile apps.
Given that these apps need to verify that users are real people and legitimate account holders, not bots or impersonators, secure communication methods have become crucial.
Whether for password resets, first-time account registrations, or other app-related activities, users must be reliably reached. A2P services were introduced to organize the delivery of verification codes, which could be sent via email, SMS, or automated voice calls.
However, the issue of A2P services remains unresolved Lebanon’s mobile operators and the companies contracted to manage it.
Two years ago, Alfa claimed that its contract with Vox Solutions was proceeding smoothly, and that the company was generating around seven million euros annually from the service, but things changed.
No A2P Payments for Alfa
After extensive research, SMEX found that Alfa has not received any A2P-related payments from Vox Solutions for an entire year. When SMEX asked Alfa, the company insisted that the contractor had fulfilled all its financial obligations without any issues.
On December 20, 2024, Lebanon’s Audit Bureau requested that Alfa provide, within a week, details about its contract with Vox Solutions, including the contract’s signing date, the service activation date, the amounts collected each year, and the methods used to transfer and collect payments.
The Bureau also asked if Vox Solutions had settled all its financial obligations under the original contract, and if there were any obstacles preventing full implementation.
The request from the Audit Bureau came after receiving a letter from November 22, 2024, in which Alfa informed the Minister of Telecommunications, Johnny Corm, of significant operational issues related to the contract.
According to the Audit Bureau’s memo, Alfa was supposed to receive 4.9 million euros in each of the first two years and 7.1 million euros in the third year, totaling 17.1 million euros over three years.
This development sparked concerns over whether Alfa is seeking to conceal that it has not received the A2P-related funds from Vox Solutions. If the company had not received these payments, then the problem is even more serious, explained Wassim Mansour, a telecommunications expert and former director of Touch.
Contract Details
The contract between Alfa and Vox Solutions was signed on January 27, 2023, for a duration of three years, starting after the A2P service became operational (three months after the contract’s conclusion).
Upon signing, the contractor was required to deposit 7.5 million euros in a bank as a guarantee for the first year, with automatic renewal upon request. In cases of delayed payments, a penalty of 0.5% per day (capped at 20% of the invoice value) would be applied.
As mentioned in the contract, Vox Solutions won the bid by offering to pay the highest price per SMS message sent from an online application to a user’s phone, starting at 0.105 euros per message in the first year increasing gradually over the following two years.
The contract also set the minimum messages to be sent by Vox Solutions at 46 million messages annually.
As for Touch, the company tried to award the A2P service six times. The bidding process was initially canceled by the Public Procurement Authority and the Audit Bureau due to significant concerns outlined in a report issued on January 16, 2024.
A new bidding process was launched, with the results originally expected in August 2024. However, after six delays, the Tender Committee at Touch expressed frustration, especially that they had received and reviewed proposals from five global companies.
The conflict between Touch’s Board of Directors and the Minister of Telecommunications, who insisted on awarding the service to InMobiles, compelled the concerned Touch employees to withdraw from their duties and uphold the Audit Bureau’s decision, according to information obtained by SMEX.
On September 27, 2024, Touch cancelled the tender, claiming that none of the submitted bids met the required qualifications. Both the Public Procurement Authority and the Audit Bureau had warned against mixing technical qualification criteria with commercial requirements.
InMobiles had agreed to a pricing rate of 0.075 euros per message, with a minimum threshold of 31 million messages. According to the figures, the contract between Alfa and Vox Solutions was expected to generate 17.9 million euros over three years, while the projected revenue from the contract between Touch and InMobiles would have yielded 7.379 million euros, although Touch has 300,000 more subscribers than Alfa.
During a press conference on December 13, 2024, MP Yassine Yassine revealed, “In September 2024, the ministry launched a new bidding process, only to abruptly cancel it for unconvincing reasons.”
“This decision allowed the Ministry to continue its work with the current company despite a 700% increase in complaints, the company’s failure to pay agreed-upon dues, and the presence of three global companies ready to provide the service more efficiently and transparently.”
MP Yassine also added that Touch had not received any advance payment for the second contractual year, and InMobiles had failed to provide the required letter of guarantee despite repeated requests and previously issued invoices.
Mansour believes that both companies contracted by Alfa and Touch to deliver A2P SMS messages failed to meet their obligations. “Both Alfa and Touch failed in managing the straightforward process of collecting revenue in exchange for delivering A2P messages,” Mansour said.
He pointed to the letter sent by Touch to the Minister of Telecommunications, Johnny Corm, on September 27, 2024, which stressed that InMobiles had not met the agreed-upon annual targets and had requested price reductions, in violation of the contract.
Mansour emphasized that such contract infringements cause significant loss to the State Treasury. So who is behind the company still holding the contract despite all the violations? And why does the ministry continue working with this company when better global alternatives are available? Who will be held accountable for the harm caused to public funds and people’s interests?
SMEX contacted the office of caretaker Minister of Telecommunications Johnny Corm to inquire about the case but received no response.
As the current Ministry of Telecommunications’ term nears its end, the minister is trying to push through the A2P contract for Touch after two years of arbitrary decisions against ministry staff and continuous disputes involving the Touch, the Ministry, the Public Procurement Authority, and Lebanon’s Audit Bureau.
“We hope the new government proves capable of addressing the issue, eliminating current obstacles weakening the telecommunications sector, and establishing mechanisms that guarantee transparency, accountability, and responsibility, with a view to ultimately serve public interest above all,” concluded Kataya.
The post Lebanon’s telecom feud disrupts SMS verification system appeared first on SMEX.