Lebanon

Roundtable on Globalization and Human Development:

Information and Communication Technology for Human Development in Lebanon

The UN House, 13 July 2001

The growth of Information Technology (IT) has been characterized by the slogan IP (Internet Protocol) over everything. Behind the rise of this slogan are the developments in communications and networking that are now the backbone of the industry. All communications, whether telephone lines, cellular lines, television, and satellite, both sound and visual in nature, will be based on IP.

These developments are already being used over telecommunications lines such as cellular telephones systems. The GSM is used through the Wap Wireless Application Protocol, as are more advanced systems such as the GPRS (General Packet Radio Service) and the HSCSD (High Speed Circuit Switch Data). In the effort to organize the information superhighway, even newer systems have been developed, such as the 3G (3rd Generation), which works on the UMTS protocol. This presents even greater possibilities for cellular telephone services and works at an extremely high speed of 2 mega bits per second.

IP growth is currently extending to the concept of Convergence, whereby telecommunications and IT will come together in networking and services provided. An example of the progression of convergence is the expansion of electronic communication and information transfer using cable, hertz waves, or electromagnetic waves, and satellite communications.

Lebanon and other Arab nations have a geographic advantage in the new economy. Therefore, strategic steps must be taken at all levels in order to benefit from IT. Existing laws and policies must be changed as they are proving to be archaic and restrictive of development. The government is not solely responsible for this, but all sectors of the economy must cooperate to achieve this goal.

In order to organize this sector, two distinct approaches are necessary. These are to basically separate between the distributions and networking of technologies and the services they provide.

Firstly, the regulation of electronic communications networks and services (inclusive of communications technology) into an organized environment through Convergence.

Second, a separation from the above of the products and services provided by IT, and thus, the creation of another organized environment.

Both sectors will work in accordance and in cooperation from each other, but would be organized distinctly.

A) The regulation of electronic communications networks and services.

To improve the sector, a vital deregulatory action is necessary. Deregulation of the telecommunications market will induce competition. The freedom of perfect competition will improve services and lower barriers to entry. Also, this will raise the sector's standards to an international level. Any new laws and policies implemented must be flexible enough to adapt to the ever-changing needs of this innovative market. All firms within the market must adhere to universal laws without exception.

Testing and experiments are necessary to verify the required changes to the sector. These could be based on the findings of market surveys and analysis, specialists' responses, and the prior experiences of European nations. For example, a five-year study can be initiated to ascertain any survey results.

As to the experiences of European nations, the EU issued a report in the official EU newspaper on 19 December 2000, a set of Directives that minimized the number of laws governing the telecommunications industry. With the aim of creating a uniform, simplified system, the EU decreased the number of directives from 28 to 8. Every member country is set to follow these regulations

The general principles that form the basis for these directives are as follows:

- The separation between a regulatory body and the business or investment firms in the telecommunications industry. This allows for a more open and competitive system, well organized, and compartmentalized in nature. 

- General licensing schemes that will simplify as well as standardize the market. This applies to all companies offering telecom products and services. 

- Provision of agreements that allow for an ease of information transfer through electronic, cable, satellite, and other networks without any hindrance that may arise due to network differences. Basically, to normalize communication lines. 

- Administration of electronic radio waves that carry at rates between 9 kilohertz and 3000 gigahertz. Also, to a general networking system that would separate these lines from the GSM and UNTS cellular telephone lines in order to avoid network congestion. 

- The creation of a standardized low cost, system, compatible with international communications networks, and capable of converging all forms of electronic communications. 

- The provision of a safety system that protects the privacy and rights of consumers and producers of telecommunications. The privacy of a conversation must remain confidential and inviolate at all times. 

B) A separation between the producers/providers of telecom and their consumers.

- These steps can be taken in accordance with the following suggestions:

- To organize laws and policies according to the type of telecom product or service concerned. Although existing laws that affect the telecom market vary from business and trade regulations to municipal and national governing laws, these policies should be updated to include general innovations in the industry. 

- Co regulation: The public and private sector need to cooperate in administrating and organizing telecom networks, services, and products. 

- E-business rules, laws and regulations should be coordinated and in congruence with international standards as issued by the UN in 1996. 

The main areas of focus for telecom management are listed below: 

a) Laws and policies must be drafted to deal with safety and confidentiality concerns.

b) E-business arrangements should be made whereby e-contracts, e-payment, and e-signatures are recognized and protected. Consumer protection against fraud in this area must be enforced.

c) Responsibility should be assigned to an administrative body, whether local or national. This distinction should be made to avoid possible conflict.

d) The government could create a specific entity to administer and govern the organization and management of telecommunications.

In order to capitalize on this growing industry, and to provide the necessary amenities and support services to the market, special attention and focus must be placed on the development of a strong infrastructure capable of handling and organizing telecom networks.

Beirut, 13 July 2001
(Informal translation of original Arabic paper)

Translation by Rasha Kashkoush