Lebanon’s Telecom Model Under Strain as Outages Highlight Governance Gaps

Telecom

In April, Lebanon’s telecommunications sector experienced renewed disruptions amid worsening electricity shortages, deteriorating infrastructure and continued wartime pressures. Outages were reported across multiple regions, further exposing the fragility of a system already weakened by years of economic crisis and chronic underinvestment.

According to LIMS, the recent failures reflect structural weaknesses in governance and operating models rather than isolated technical incidents. The state-owned fixed-line operator, Ogero, remains heavily dependent on ageing private generators, a necessity driven by insufficient public electricity supply. This reliance has left core network infrastructure exposed to repeated breakdowns as generators operate under sustained and often unsustainable pressure.

Beyond the immediate service interruptions, LIMS criticized the broader institutional framework governing the telecom sector, characterised the government ownership and operation. Instead, a structure in which private companies finance, build, manage, and compete would yield a better result.

Telecommunications costs remain a significant burden for Lebanese households. LIMS links this outcome to a fiscal model that has historically treated the sector as a primary source of government revenue. As a result, telecom have functioned less as productivity-enhancing infrastructure and more as a channel for indirect taxation.

The current disruptions highlight the urgency of adopting a new private-sector led model capable of mobilising the investment required for next-generation infrastructure, including 5G networks. Such upgrades are estimated to require at least $200m in capital investment and several years to deploy. Without a shift to competition and privatisation, Lebanon risks further deterioration in service quality and a widening gap with regional and international digital standards.

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