Lebanon Businessnews News
 

Mobile Bill: 65 percent taxes
Nahas: "the bulk of telecom revenues come from taxes"
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Taxes represent 65 percent of the total mobile bill, commercial and operational charges constitute only 25 percent of the bill while the remaining ten percent are charges for unbilled services, said Nahas.

Nahas said that the Ministry is preparing a restructuring plan which includes the liberalization of the sector, and reducing mobile charges. However, “the tax side should be separated from the commercial side in any privatization process,” he said.

Nahas said that the restructuring plan has started with setting new terms for Zain and Orascom in the renewed contracts. He said “the terms secure additional revenues of $15 million for the government and better understanding for the sector.”

Instead of paying a fixed-monthly operational fee for the two telecom firms, Zain and Orascom will be paid a fee of $2.5 million per month; in addition they will get an 8.5 percent share from the generated revenues.

Nahas said that Orascom, which operates the Alfa network, directly agreed on the new terms. Zain, which operates MTC Touch’s network, accepted the  offer, just hours before the cabinet's meeting which extended the contracts for the two companies.

Nahas said that the ministry will undertake profound studies for the sector over the next six months, to better understand “how revenues are distributed,” and at the same time find ways that should “be adopted to balance the good quality for services with the flow of revenues.”

Date Posted: Feb 03, 2010
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