Policy Paper: Reforming Governance in Lebanon’s Mobile Telecom Sector

Decades of political interference, mismanagement, and corruption have rendered Lebanon’s telecom sector dysfunctional. These systemic failures left users with weak and overpriced services, discouraged investments, and slowed down state operations—all at a time when tech sectors have become the backbone for strong economies.

A new policy paper, prepared by telecom expert and former “touch” CEO Wassim Mansour in collaboration with SMEX, sets out a roadmap for reform. Drawing on international models of public corporate governance and the findings of Lebanon’s Court of Audit, the paper identifies structural failures and proposes concrete measures to rehabilitate the sector. 

The policies proposed in this paper underwent extensive discussions and amendments over the span of six months with leading Members of the Parliament (MPs) and experts, most notably MPs Paula Yacoubian, Halimé Kaakour, Yassine Yassine, and Professor Nizar Saghieh, the Executive Director of Legal Agenda.

Key Highlights and Recommendations

  • As documented in previous reporting by SMEX, the sector suffers from chronic instability in management. We offer an in-depth analysis of four major phases of disruption that have eroded trust and efficiency.
  • We found an absence of a clear contractual framework between the state and operating companies has left all entities unaccountable.
  • We recommend establishing an independent Board of Directors to separate public ownership from operational management.
  • We recommend strengthening institutional oversight and involving regulatory and financial bodies in decision-making.
  • We reaffirm the Right to Communicate, where reform must guarantee fair access to services, especially for the most vulnerable groups.
  • We recommend following Key Performance Indicators (KPIs) to measure operational efficiency and productivity in Lebanon’s two mobile telecom operators, known as MIC1 and MIC2. These KPIs include:
    • Operating expenditure (OPEX) per subscriber
    • Average Revenue Per User (ARPU)
    • Percentage of spending on consultancy
    • Network site density
  • We recommend establishing a clear path to issuing a regulatory decree that ends the transitional phase and establishes transparent, sustainable partnerships with the private sector.

This paper was officially submitted by the MPs who participated in the discussion sessions to MP Ibrahim Mousawi, the Chairman of the Media and Telecommunication Parliamentary Committee, paving the way for its discussion in parliamentary sessions to recommend that the government adopt the proposed decree.

We consider this paper to be a founding document for a new, more transparent phase in the governance of Lebanon’s mobile telecom sector. Despite SMEX’s best efforts at fighting for improved transparency and privacy protection measures, we realize that the application of our recommendations require the careful consideration of the government, the President of the Republic, and all relevant stakeholders to ensure improved services, more trust, and the attraction of greater investment for the sector.

Read the full policy paper below or download it from here.

EN-Mobile-Telecom-Sector-Governance-Policy-Paper-Lebanon

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