Telecommunications has become a critical pillar of the modern economy, and its importance is amplified In Lebanon by war, displacement and the need to shift towards remote schooling and work. Once a reliable source of state income, this sector has seen revenues erode sharply over the past decade, undermined by deteriorating service quality, dubious investment decisions and over-employment.
The government’s current approach seeks to retain state ownership of the two existing mobile operators, MIC1 and MIC2, while transferring management to private hands. Full privatisation is postponed for at least four years and meanwhile a third state-owned operator, Lebanon Telecom, will be launched, effectively expanding public sector participation rather than reducing it.
LIMS argues this policy risks missing the broader economic role of telecommunications. Rather than treating the sector as a fiscal instrument, policymakers should position it as a driver of growth and a catalyst for investment. Crucially, this requires distinguishing between privatisation and competition. While delaying asset sales may be defensible, restricting market entry is not. Limiting participation to a small number of operators, two in the past, has already produced weak competitive dynamics, resulting in a de facto duopoly that failed to deliver either lower prices or better services. A state-led triopoly would likely replicate these shortcomings.
Instead, LIMS advocates opening the market to multiple private entrants during the transition period. The regulator’s role should shift towards facilitating entry through easy licensing, allowing any qualified operator to compete. Such an approach would foster continuous pressure on incumbents, ensuring that performance, rather than protection, determines market share.
Expanding access to Starlink beyond corporate users to individuals would reinforce this competitive dynamic. In a context of Lebanon, where terrestrial infrastructure is vulnerable to disruption, whether from conflict, fuel shortages or institutional failure, Starlink offers a resilient alternative. Allowing households and small businesses to access such services would not only improve service continuity, but also introduce an external competitive benchmark, compelling domestic operators to improve quality and pricing. Moreover, it would help stem the digital isolation that has accompanied Lebanon’s economic crisis, enabling participation in global markets and remote work opportunities.
Ultimately, comprehensive reform hinges on providing the private sector with a credible and predictable investment framework. LIMS maintains that Lebanon’s economic recovery will depend in part on attracting substantial capital into telecommunications. An open and competitive sector is not only essential for safeguarding connectivity in times of crisis, but also for laying the foundations of future growth.
- Liberalizing the Telecommunications Sector in Lebanon: Towards a Competitive and Economically Productive Environment February 16, 2026: Aljadeed, Video interview (AR)