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Banking & Finance

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by Executive Editors November 30, 2010
written by Executive Editors

Capital makes a venture

Middle East Venture Partners (MEVP), one of Lebanon’s few venture capital (VC) firms, made its first investments last month. As Executive reported in September MEVP has already closed its first fund, the Middle East Venture Fund, at $10 million, and has targeted a treasure chest of $20 million. The first of the young firm’s investments is in Pin-Pay, a platform that looks to transform mobile devices into payment tools. The second is iLevel, which claims to be Lebanon’s first “shopper marketing” agency. And the third is Multilane, a tech firm specializing in optical communication. Tarek Sadi, managing director at MEVP said: “We believe that the efforts of MEVP and other VCs in the region will give entrepreneurs more clarity into the benefits of institutional investors, galvanizing a deep ecosystem.” In other VC news, Berytech Fund, a competing VC firm, bought a 35 percent stake in technology start-up Dermandar last month. Dermandar works in digital image processing and is creating a tool to ease the production of panoramic photos. Dermandar is owned by Elie-Gregoire Khoury and Elias Khoury.  Berytech is reported to have funds of more than $6 million and tends to prefer tech companies. Though the value of the 35 percent stake has not been released, the fund’s investments usually range from $100,000 to $1.2 million.

Lebanese banks hold up in regional roundup

Seventeen Lebanese banks have made the Union of Arab Banks’ top 150 Arab Banks list. The banks on the list, published last month in Al-Iktissad Wal A’amal magazine, have been ranked based on their consolidated assets. Bank Audi Saradar, the first ranked among Lebanese banks, came in 26th place in the entire region. Bahraini banks had the largest showing on the list with 25 banks, followed by the UAE with 20, Lebanon with 17, Egypt with 15 and Saudi Arabia with 11.

Ranking of Lebanese banks among the top 150 Arab banks

Source: Credit Libanais Research, Al-Iktissad Wal A’amal

Soaking up Islamic liquidity

The United Arab Emirates will soon begin issuing Islamic certificates of deposit (CDs) in an effort to absorb excess liquidity, according to Afaq Khan, chief executive of Standard Chartered’s Islamic banking arm Saadiq. Khan told Maktoob Business that the CDs will be used as “a tool to absorb the excess liquidity in the Islamic money market.” The Islamic banking sector faces a lack of sharia-compliant tools to absorb excess liquidity, as CDs issued by the country’s central bank are not acceptable in Islamic law. Although 16 percent of the UAE’s banking assets are in Islamic finance accounts, the country currently has no liquidity management tools in place, while Pakistan — whose Islamic banking sector makes up 5 percent of assets — already has a local currency Islamic treasury, according to Khan. The move is the result of a liquidity management committee set up by the UAE central bank, which will also be considering an Islamic repurchase facility. The Islamic CDs will be offered up for auction daily and will work on a commodity-based murabaha plan, meaning that the profit will be based on the buying and selling of commodities and not interest. They will at first only be available to Islamic banks, but will eventually be available to conventional banks as well.

Insurance potential

Zurich Financial Services Group announced on October 11 that it would soon acquire a 99.98 percent stake in Compagnie Libanaise D’Assurances, a privately owned Lebanese insurance company with operations in the United Arab Emirates, Kuwait and Oman. Compagnie Libanaise D’Assurances posted gross written premiums of $49.1 million and a net income of $5.1 million at the end of 2009. Lebanon’s struggling insurance sector suffers from antiquated legislation and a lack of tax incentives to encourage the use of life insurance as a savings tool. Lebanese Minister of Economy and Trade Mohammad Safadi said that the insurance sector needs to take steps to ensure that informed human resources are available to Lebanon’s growing insurance market, at a conference in late September. He further said that regional cooperation and new legislation were on the way.

“Lebanese insurance companies are poised to grow if the economic free zone between Lebanon, Syria, Jordan and Turkey is formed. This will open a commercial and consumer market to 120 million inhabitants,” said Safadi. He continued: “We have complete confidence that the modernization of legislation and implementation of laws will provide protection for the holders of insurance policies and organize the work of all those who are involved in the insurance field.” Safadi also announced that his ministry would begin to publish insurance sector statistics to encourage transparency. Currently the only insurance statistics published in Lebanon are in Lebanon’s Al-Bayan magazine, which gets its information through an exclusivity agreement with the ministry.

Pumping the portfolio

The net investment portfolios of Lebanese financial institutions in foreign debt and private equity reached $5.3 billion as of March, according to Byblos Bank. This marks a 24.4 percent increase from the March 2009 figure, which was $4.2 billion. Of the $5.3 billion, 51.8 percent ($2.7 billion) is in equities; long-term debt securities constitute 45.3 percent ($2.4 billion) and short-term debt securities representing 2.9 percent, or $153.5 million.

Destination of equity investments

Destination of long-term debt investments

Source: Byblos Bank

HSBC Islamic bond issue

HSBC is in the final stages of launching its first Islamic bonds exchange traded fund (ETF). The fund is largely aimed at international investors who have been rushing to booming emerging market funds, primarily in Brazil, Russia, India and China. The Middle East has been largely left out of this rush, which totaled $49.4 billion in investments according to financial data provider EPFR Global. Desirable international investors have largely ignored the region due to ongoing debt struggles and caps on foreign participation.

Raya’s debt roll over

The Lebanese Finance Ministry will be refinancing $800 million in maturing Eurobonds this month and will seek to swap $3.48 billion in additional Eurobonds due to mature in 2011 for longer maturities. Finance Minister Raya Hassan announced the plan at a conference late last month, where she also stated that the ministry is studying the market to achieve the optimum results from future swaps. She said that rolling over all debt maturing this year, and most if not all debt maturing in the first quarter of 2011, is advantageous because of the low interest rates expected to continue through the first half of 2011. Hassan stated that she expects 5 percent GDP growth in 2011 and 7 percent in 2010. The budget deficit will increase to $3.5 billion next year from $3.4 billion in 2010, said the minister. The weighted interest rate on Lebanese Eurobonds was 7.34 percent at the end of July, according to Byblos Bank.

November 30, 2010 0 comments
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Feature

A sea of plenty?

by Executive Editors November 26, 2010
written by Executive Editors

Projections indicate that over the next 30 years, the outlook for the water situation in the Mediterranean zone — including the Levant — is dire. Over the past century or so, most of the area witnessed a clear trend involving a decline of up to 3 millimeters (mm) per year in annual precipitation.

And things are not set to get any better in the future: the International Center for Agricultural Research in the Dry Areas predicts a 10 percent drop in precipitation in the region during the next three decades compared to the average over the past 100 years. Moreover, most of the decline will take place during winter and spring, when decreases of up to 20 percent are expected, which means that the growth cycle of the vast majority of major field crops will be affected with potentially disastrous consequences.

At the same time, the mean annual temperature of the region is expected to increase by 0.5-1.5 degrees over the coming 30 years, with most of the change occurring in the summer (when it will be approximately one to two degrees hotter). The most affected areas will be Syria and Jordan, where 30 percent of the land will deteriorate from a steppe to a desert, while Lebanon and the West Bank will also witness substantial, if less drastic, change. This will lead to shorter growing periods, with much of the region experiencing reductions of up to 15 days and the decline in parts of Syria, the West Bank and Cyprus more pronounced. Only in some of the high mountain areas of Lebanon will the length of the growing period actually increase due to the rise in temperature, as this will reduce the number of days when cold weather limits growth.

Such trends will thus be highly significant for the economy in most of the Levant. Climate change — whatever its cause — means that more frequent and severe droughts can be expected in the near future, and that desertification is a greater threat than ever. Drought may not be preventable, but actions can be taken to adapt water demands and mitigate the impact.

Turkish temptation

The countries of the Levant may look west, where Turkey bathes in apparent aquatic abundance. But with a growing population and difficulty harnessing supply to its full potential, the Turkey of the future may have its own problems to solve.

For the last few decades the country has been touted as the lifeline and reservoir of the Fertile Crescent, that arc of relative greenery that stretches from the end of the Persian Gulf through Iraq and the Levant to the western tip of Egypt.

At first glance, Turkey would seem to be water-rich: it has some 120 natural lakes, the largest and deepest of which is Van, with a surface area of more than 3,700 kilometers square and a depth of over 100 meters. The Turks also have hundreds of large dam reservoirs, of which the biggest is the 817 square-kilometer lake behind the Ataturk Dam, one of the world’s largest projects of its kind. Moreover, the country is well endowed with rivers, many of which rise and empty into seas within Turkey’s borders, though others such as the Tigris, Euphrates and Orontes are shared with Arab neighbors.

All of this bounty is renewable thanks to extensive rain and snowfall. Turkey’s mountainous coastal regions receive abundant precipitation of up to 2,500 millimeters per year, though areas away from coastal fringes get less: 500 to 1,000 millimeters per year in the Marmara and Aegean regions and in the plateau of East Anatolia, while most of the central and southeastern zones receive only 350 to 500 millimeters annually. Snow falls all over Turkey, and is retained in high mountain areas —  in spring, the meltwater feeds rivers and ground water sources.

Climate change may make inroads into all this, but Turkey is in better shape than its southern neighbors. With such an abundance of water, sending some of the stuff to slake the thirst of a parched Levant may at first glance seem simple. In fact, well before growing regional drought and desertification became widely recognized, various schemes to pump Turkish water south were touted.

These included two pipeline projects for which preliminary feasibility studies were completed late in the late 1980s. The first was the ‘West Line,’ a 2,650 kilometer long route to transfer 3.5 million cubic meters daily from Turkish rivers to Syria and Jordan, and on to the Saudi cities of Tabuk, Yanbu, Medina, Mecca and Jeddah. It was to be matched by a ‘Gulf Line’ carrying 2.5 million cubic meters over 3,900 kilometers through Syria, Jordan, and Saudi Arabia to the Arab Gulf states. The projects never got off the ground.

In only two decades, Turkey could become a water-poor state

Thirst for efficiency

But the Turkey of today is not the same as that of the mid-20th century in terms of water supply and demand.

Countries are “water-poor” if annual available water volume per capita is less than 1,000 cubic meters, or “stressed” if the figure is between 1,000 and 2,000 cubic meters. According to this common international norm, Turkey is now water-stressed; the annual available volume of water has recently been approximately 1,500 cubic meters per capita, whereas in 1960, when the population was only 28 million, it was 4,000.

The official State Institute of Statistics has estimated that Turkey’s population will reach 100 million by 2030; so, all things remaining equal, the annual amount of water per capita available to the Turks will be about 1,000 cubic meters. In only two decades, Turkey could become a water-poor state. Under these conditions, it is more important than ever for the Turks to develop and allocate water resources efficiently before thought is given to sending it south to supply the parched Levant or Gulf regions.

Inside the country, a lot still has to be done to make the best use of water wealth; despite implementation of some ambitious plans to dam and otherwise better store and utilize water, Turkey in recent years has only been using 37 percent of the available exploitable potential of 112 billion cubic meters.

One problem is that distribution of precipitation in the country is uneven: water is not always in the right place at the right time to meet needs. For example, the average number of days on which it snows and the duration of cover vary considerably among regions, from less than one day a year in the Mediterranean zone to over 40 in Eastern Anatolia. The trouble here is Turkey’s settlement patterns are the opposite; people and industry tend to be located in the dryer Mediterranean region. Another issue is that rivers have irregular regimes and natural flows cannot always be diverted directly.

These problems could be addressed through massive new investments which would allow the country to make better use of its water, in which case it could conceivably export some of it to thirsty southern neighbors.

Otherwise, the water wealth of Turkey will continue to be underexploited, to the detriment of Turks and Arabs alike.

November 26, 2010 0 comments
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Feature

The specter of Solidarity

by Executive Editors November 26, 2010
written by Executive Editors

For the past four months, former workers have been staging a sit- in at the gates of the Future Pipe Industries (FPI) factory in Akkar, Lebanon’s underdeveloped northernmost region. FPI, a global manufacturer of fiberglass pipes announced in July that it would be closing the Akkar plant, citing adverse operating conditions.

But many of the factory’s 200 contracted workers, and up to 140 daily workers, are crying foul. They say that some of the employees, who are unionized, were so skilled that they were sent to some of FPI’s 10 other factories around the world to train others and that the company had just supplied the Akkar plant with new machines worth millions, suggesting that the factory was not losing money. The workers also claim to have been dismissed without proper consultation or compensation.

The more active members of the FPI union, having been left in a jobless limbo, are insisting that they will camp outside the factory, blocking the company from removing the machinery, until they have received adequate compensation or get their jobs back.

“I have six kids who are all in school, except one that works at General Security,” says Jamil Abou Chakra, 46, who had worked in the factory for 13 years. “We are willing to die or go to prison because we have nothing left.”

The unity of the former factory workers is far from absolute, however, as the company has actually hired a number of them as security guards to prevent the strikers from entering the factory.

Unions bygone

“Compared to [the union movement] before the war, you now have a miserable corpse of what it once was,” says Fawwaz Traboulsi, professor of politics and history at the American University of Beirut and the Lebanese American University, as well as the author of “A Modern History of Lebanon.”

Traboulsi was an activist in his day, mobilizing teachers and students and supporting the union movement in the 1960s and early 1970s when it was agile, energetic, increasingly powerful and largely independent.

Now, he speaks like a preacher who has lost his flock, obviously capable of passion and energy but no longer motivated to summon either. The unions he once championed are now husks of their former selves, weak, divided and in the thrall of sectarian political masters.

At the end of the 1975 to 1990 Lebanese Civil War, Traboulsi says that almost no one was interested in bolstering the trade union movement. Strong unions would slow reconstruction by demanding wage hikes and politically independent unions would be of no use to Lebanon’s sectarian leaders.

“[Former Prime Minister Rafiq] Hariri wanted docile trade unions, but more important than Hariri were the Baathists, the Syrian intelligence and the Syrian Socialist Nationalist Party (SSNP), as well as labor ministers, who interfered very strongly in the trade unions,” he explains.

First off, a strong union movement is hindered by regulatory infringements on what should be — according to the International Labor Organization (ILO) — inalienable rights.

ILO Convention 87, established in 1948, reads: “Workers and employers, without distinction whatsoever, shall have the right to establish and, subject only to the rules of the organization concerned, to join organizations of their own choosing without previous authorization.”

The Lebanese government has refused to ratify Convention 87 under the pretext that doing so will allow the trade unions to become a direct reflection of the sectarian divisions within the country. But many of those interviewed for this article agree that this is the case despite not ratifying the convention. 

“In our mind it is already divided like this,” says Walid Hamdan of the ILO’s Regional Office for Arab States. Refusing to comply with Convention 87 allows the Lebanese government to deny public employees, including teachers, the right to organize into unions as well as to require every new union, strike or protest to be approved by the labor minister. And with much of Lebanon’s large-scale industry destroyed in the war, new unions that were formed after 1991 became smaller and more localized than their pre-war equivalents. The unions then became an extension of the country’s sectarian system.  “The period where thousands of people thought that their interests could be served by resorting to the trade unions was a pre-war phenomenon. Now, sects take care of people’s interests,” says Traboulsi.

The unions are now husks of their former selves, weak, divided and in the thrall of sectarian political masters

Politics in Akkar

Political interference is also one of the complaints of the workers at FPI’s factory in Akkar.  The company was founded by Fouad Makhzoumi, leader of the fringe National Dialogue Party, which has no seats in parliament. Most of the workers had formerly been supporters of the Future Movement before, they claim, they were either “forced” or “encouraged” to join the National Dialogue Party. The assertion of being forced to switch political parties, however, means little to the ILO’s Hamdan, who sees the whole ordeal as a weakening of resolve on the workers’ behalf, rather than a grievance to be included in the complaints.

“This is where the problem is. From the beginning I shouldn’t align myself with anybody,” says Hamdan. “I’m an independent entity and my only concern is how to best defend the interests of my workers.” After the strike began, the men had hoped to turn to the ruling March 14 coalition for support as the Future movement currently holds sway in the region with a majority of Akkar’s parliamentary seats — that was before August 6, when Makhzoumi held a dinner in honor of Future Movement leader, Prime Minister Saad Hariri.

The FPI workers now find themselves in the difficult position of being without a political patriarch interested in maintaining their support.

Woes of the workplace

The strikers claim that the working conditions in the plant were hazardous, with fiberglass dust constantly in the air and no masks or aspirators provided, causing respiratory problems, eye infections and even cancer.

“The fiberglass, while we are grinding it, makes a cloud inside the factory and makes infections in the eyes,” said FPI union president, Abbas al-Badan, 53, who worked at the factory for 12 years. At FPI’s Egypt factory workers have also accused the company of workplace malpractice, presenting a report in August to the Egyptian Attorney General claiming that the unsafe use of toxic materials in the factory resulted in a worker’s death.

FPI has called all of the Akkar union’s accusations “calumnious.” When contacted by Executive, FPI’s head of communications said the company would not grant interview requests. A written company statement on the matter reads: “The company holds since 2004, the International Organization for Standardization 14001 accreditation for its compliance with the strongest environmental requirements and is subjected to continual audit in this connection twice per year.”

But the workers argue that, in the case of Lebanon, inspectors were bribed and the factory management was given advance warning of inspections, giving them the opportunity to temporarily improve working conditions. Despite the many grievances of FPI’s workers, the strike has resulted in little progress since it began in July, and union experts are pessimistic about its success. The protest’s removed location limits media attention and the organizers have struggled to arrange more visible events in Beirut. And despite their efforts, the workers have not been able to gather in such numbers as to make a strong and un-ignorable stand.

But as the workers sit at the factory’s gate, taking shifts and waiting for a wave of public support they can only hope is on its way, they beg the questions: why are they doing it alone? And, if conditions were as egregious as they say they were for 15 years, why are they only just now bringing up the subject?

Systematic fragmentation and politicization of the trade unions as a whole have weakened them almost to ineptitude

State of the unions

The FPI union in Akkar is just one example of how systematic fragmentation and politicization of the trade unions as a whole have weakened them almost to ineptitude.  The natural place for the Akkar protestors to look for support would be up the ladder of the union system to the confederation. Lebanon’s General Labor Confederation (GLC) is the parent organization of all of Lebanon’s 52 trade unions, but the oddly unfinished lobby in the confederation’s building is not the only thing giving the organization a derelict air. The GLC suffers from structural defects that make it ill-equipped to help small causes like the strike in Akkar. The confederation, for example, does not require its member unions and syndicates to pay dues. Some of the wealthier sub-organizations do contribute, but Ghassan Ghosn, president of the GLC, says that it is impossible for the smaller organizations to do so, as they struggle to fund even their own operations.

The GLC is largely funded by the government and is included in the Ministry of Finance’s budget, as is the case in most countries.

“When the union movement depends solely on government funding, that can be used as leverage to pressure them here and there,” says ILO’s Hamdan. “If [they] don’t have other sources of funding then [they] lose [their] independence.”

Ghosn says even with government money, the GLC’s funding is inadequate. The GLC did provide the Future Pipe union with a lawyer to help in their efforts, but funding for further legal counsel or efforts to generate awareness through paid media are nowhere to be found.

Ghosn claims, however, that further funding is unnecessary in the case of the FPI workers. “Their problem is not a question of money. Publicity does not need money. The newspaper and other media is free,” he said. “Even if they have a lot of money they will not be on the level of Makhzoumi.”

Outside of individual union activities, the GLC also lobbies on behalf of all workers in Lebanon. In March, Ghosn and representatives from the GLC met with the Minister of Labor in order to present grievances regarding just taxation, social security benefits, and the provision of electricity and water.

It is these general demands that most frustrate Hamdan: “If I were in the leadership of the [confederation] one of my major priorities would be to have the right of all workers to associate and organize. They make only shy demands.”

The yearly meeting between the GLC and the Ministry of Labor yielded little results and meetings continued throughout the summer. A general strike was planned for June but Ghosn called it off in when promised a ministerial committee dedicated to GLC issues. He also said the GLC did not want to interfere with the tourism season. After months without progress, Ghosn threatened again in September to call for a general strike if his concerns were not addressed.

This is effectively the only card he has to play, but it has nowhere near the punch it would have had prior to the civil war. No general strike since the war has drawn the thousands of workers they used to. When crowds do form, they usually don sectarian colors and flags — whatever the real reason for the protest. The clashes and street battles between government and opposition supporters in May 2008, after all, began with a labor strike. A general strike might then be perceived as more a threat of civil unrest than a protest.

No general strike since the war has drawn the thousands of workers they used to. When crowds do form, they usually don sectarian colors

Still waiting

Sitting under their tent on a smoldering summer day, the former workers of FPI in Akkar admit that they allowed the union to weaken and almost disappear before their dismissal. After years of letting management pick the union leader, of turning their heads when the factory was kept from working at full capacity on “surprise” inspection days, for accepting the hours, the conditions and the pay they now think was so unfair, they say they feel a shard of remorse and even shame.

At present, it is looking unlikely that the workers of Future Pipe will get what they want, as they have been effectively abandoned to their fate by the country’s union leaders and the Lebanese state.

“Whatever pretext is being used for throwing these people out I think they have the right to decent jobs and the right to discuss their own future,” says the ILO’S Hamdan. “Whenever there is some sort of summary dismissal, whatever pretext, whether economic or technical, it should be negotiated with the workers, which did not happen.” He sighs: “I am very supportive of their demands, but it’s not the commune of Paris.” 

November 26, 2010 0 comments
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Editorial

The road carnage must end

by Yasser Akkaoui November 26, 2010
written by Yasser Akkaoui

Last month the son of good friends of mine was killed, hit by a car as he crossed the street on the way to school – his life cut short at just 17 years of age. The same week he was killed I heard that at least another half dozen others were also killed in vehicle accidents. As a conservative estimate, almost 7,000 people have lost their lives on Lebanon’s roads since 2000, and thousands more injured.

Were the roads kept up properly, and even the most basic safety rules enforced by the authorities and adhered to by drivers, the vast majority of these individual tragedies could have been avoided. 

The human cost of this carnage is incalculable.

Where we can begin to quantify the loss, however, is in strain on the medical and insurance sectors, and the loss of economic productivity. Antiquated cars speeding down badly paved roads is also bad for the environment. On many levels, the malaise on our roadways impacts our lives.

It also helps steer away foreign investment and foreign human capital – who wants to move to a place where their family is threatened daily by a nation of irresponsible morons playing bumper tag?

And while foreigners can choose to stay away, most Lebanese have little choice but to remain here and run the gauntlet each and every day they venture out on our lawless roads.

In the same week as the fatalities were piling up, Lebanon’s Internal Security Forces General Directorate issued figures showing traffic fatalities had dropped somewhat compared to previous years. With fatalities still ludicrously high, however, this is no reason celebrate.

Ironically, it is only the fact that our roads are in such bad condition that the body count is not higher. Imagine the death toll if we had European-style highways on which Lebanese drivers could give full expression to their juvenile need for speed.

The government must act. Lebanon should not be a country where children have to risk so much just to cross the street, fearing drivers who, by and large, conform to no road regulations and who know that law enforcement agencies will do nothing to oblige them to. This must end.

How many people have to die before the state wakes up?

November 26, 2010 0 comments
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When peace is the target

by Nicholas Blanford November 3, 2010
written by Nicholas Blanford

Two separate editorials on the same day in the Israeli press last month underlined the confusion that informs analysis on Syria’s intentions regarding the resumption of peace negotiations with Israel.

The right-wing Jerusalem Post castigated Syria for its “derisive” response to attempts by the Obama administration to engage with Damascus after the years of isolation under George W. Bush. A day after George Mitchell, the United States Middle East envoy, met with President Bashar al-Assad in Damascus to further hopes of a resumption of Israeli-Syrian accord, Russia confirmed it would honor its agreement to supply Syria with P-800 Yakhont anti-ship missiles. The Jerusalem Post surmised that the missiles would probably end up in Hezbollah’s hands, enabling it to fulfill General Secretary Hassan Nasrallah’s vow in May to target shipping along Israel’s entire coastline.

In fact, Hezbollah probably already has acquired anti-ship missiles larger than the Iranian Noor/C-802 system it used in 2006 to disable an Israeli warship off the Beirut coast. Iran produces a longer-range version of the Noor called the Raad, which could theoretically hit Israeli shipping off the coast of southern Israel from launch sites as far north of the border as Beirut.

The Jerusalem Post also noted that Assad “made it clear with whom his loyalties lie” when he met with Mahmoud Ahmadinejad as the Iranian president stopped briefly in Damascus a day after Mitchell’s visit.

“It has become abundantly clear that the Obama administration’s attempt to ‘engage’ Syria… has been a resounding failure,” the Post said. In contrast, the liberal Haaretz newspaper interpreted Ahmadinejad’s visit to Damascus as showing his “fear that Syria will weaken its strategic relationship with the Iranians.”

Haaretz blamed Israeli Prime Minister Benjamin Netanyahu for the lack of progress on the Syria-Israeli track and urged him to heed the advice of the Israeli military establishment, including Defense Minister Ehud Barak, and accept Assad’s offer to resume talks. The conflicting viewpoints of these two Israeli newspapers may have earned a smile of satisfaction in Damascus. The Syrian regime is a master at fence-straddling, turning what normally would be a tactical ploy into a permanent strategy. Playing all sides at once ensures a degree of relevance and a steady queue of regional and international envoys knocking on Assad’s door. Critics of Syria insist that the regime’s ambiguity disguises an insincerity over its commitment to a peace deal with Israel. Peace would alter the geo-strategic environment of the region and compel Syria to make some hard decisions, such as reconfiguring its relationship with Iran and, therefore, also with Hezbollah.

There may or may not be some truth in such analyses, but we will not know because successive Israeli governments in the past decade have shown almost no interest in forcing Damascus to make those hard choices by pursuing peace. The last meaningful negotiations between Syria and Israel were in early 2000. Even then, Barak, the prime minister at the time, who enjoyed a broad mandate to pursue peace and the active support of the Clinton administration, got cold feet and could not bring himself to offer what he knew Hafez al-Assad wanted — the return of the Israeli-occupied Golan Heights to Syria — fearing it would not be accepted in Israel. No successive Israeli prime minister has shown any genuine interest in resuming talks with Damascus. Why would they? The border with Syria has been quiet since 1973.

The US is incapable of compelling Israel to talk to the Syrians if the Israelis are not interested. Given Israel’s succession of frail government coalitions, no prime minister is willing to risk his job for the sake of peace with Syria. Israeli leaders already have to contend with an increasingly militaristic and violent settler movement in the West Bank, so why antagonize the settlers in the Golan Heights as well?

I was once told an anecdote that well illustrates Israel’s reluctance to change the status quo with Syria. During a meeting of the Israeli cabinet in 2004, then Foreign Minister Silvan Shalom recommended attacking Syria and changing the regime. Ariel Sharon, the then prime minister, shook his head and said that that was a very bad idea.

“If we did that one of two things would happen,” he said. “Either we get the Muslim Brotherhood running Damascus or we get a democracy, and then we would have to make peace with it.”

November 3, 2010 0 comments
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The Delhi belly games

by Paul Cochrane November 3, 2010
written by Paul Cochrane

 

Hosting a global sporting event can do wonders for a country’s image, proving it’s a sophisticated, advanced nation able to meet demanding international standards and put on a good show. Think of China hosting the 2008 Beijing Olympics or the World Cup in South Africa this year.

But if the organizers are floundering just weeks before an event starts and negative publicity starts kicking in, a country’s reputation can be dragged through the gutter. India’s mismanagement of the Commonwealth Games (CWG) in New Delhi last month is such a case.

Qatar, which is bidding for the 2020 Olympics and the 2022 World Cup, would do well to learn from India’s mistakes if it is not to fall into the same trap.

Whether a country likes it or not, dirty laundry will be aired as every minute detail of the event falls under the microscope of the global media.

India spent some $9 billion on the CWG. Stories abound in the press about corruption, the working conditions of the 100,000 construction workers, the estimated 1,000 work-related deaths, and the 400,000 Indians that had their homes demolished to make space for the venues.

Some of India’s largest construction companies have also had their names tarnished for flouting numerous work-related laws, among them the United Arab Emirates-India joint venture Emaar MGF. At the end of October India ordered the confiscation of the companies’ $41.3 million bank guarantee and brought legal action after “irregularities” and deficiencies were found in the CWG village.

Many Indians are embarrassed by the way the CWG has been handled, and rightfully so. A country cannot just paste over the cracks and hope no one notices. Ironically, India knows this only too well as it struggles to promote itself as an attractive investment and tourist destination. After all, India has spent millions of dollars on the very professionally done “Incredible India” ad campaign, but your potential tourist is invariably put off by the stereotype image of poverty and bad hygiene. It is perhaps no surprise then that India only receives a paltry 5 million foreign tourists a year; Egypt by comparison gets 13 million.

Indeed, security and hygiene were major concerns for CWG athletes, with several stars pulling out early and more threatening to do so in the week up to the event with facilities unfinished, a footbridge collapsing and a cobra found in an athlete’s room.  

Things did not go much better once the event started. On the second day there was a bomb scare hoax and then the infamous Delhi belly started setting in, particularly among swimmers, attributed to pools’ dubious water quality. English sprinter Mark Lewis-Francis chose not to bite on his (silver) medal on the podium, as is customary. “I don’t really want to bite it because I don’t want to get Delhi belly,” he told reporters.

India has not exactly helped itself either when trying to justify the sub-standard facilities at the Athletes’ Village, with an off-the-cuff remark by Organizing Committee General Secretary Lalit Bhanot causing much mirth: “Everyone has a different standard of hygiene. The rooms of the Games Village may be clean according to you and me, but they [the West] have some different standard of cleanliness.”

If Qatar gets either bid for the world’s biggest sporting events, it will be a colossal undertaking for Doha. Qatar certainly has oodles of cash to play with and could pull off a great show if the planning is right. Despite early doubts, the Gulf state pulled off the Doha Asian Games in 2006.

The Asian Games were very much a trial run for something bigger, and Qatar has embarked on an ambitious marketing campaign to convince the world it has what it takes. The Middle East has never hosted an event of such global proportions, which lends weight to Qatar’s bid. Where else in the region could pull this off, particularly taking into account security concerns? Only the UAE springs to mind; Bahrain has enough on its plate with Formula 1. If it learns from India’s mistakes, Qatar may just have a sporting chance.

PAUL COCHRANE is the Middle East

correspondent for International News Services

November 3, 2010 0 comments
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Society

Executive Insight

by Mark Helou, Zeina Loutfi & Ramsay G. Najjar November 3, 2010
written by Mark Helou, Zeina Loutfi & Ramsay G. Najjar

From the primitive sounds and onomatopoeias of our prehistoric ancestors to the profusion of messages conveyed by media channels, online networks and satellite televisions, language has always been, and remains, by far the most important tool of communication. 

Language brings people and nations together while channeling thoughts and ideas to fuel progress on all levels. Many theorists have even posited language as the source of human intelligence, suggesting that we do not speak because we are intelligent, but that we became intelligent precisely because of our ability to speak.

Either way, it is clear that languages all over the world are meant to accompany the progress of civilization and intelligent thinking, continuously evolving and changing in order to keep up with the times and remain a driver of progress and a vector of ideas.

Despite that, we still see language authorities spending much time and energy trying to ward off change through fighting influences and “infiltrations,” or what they deem as “contaminations” by other languages.

A pertinent example would be France, which has resorted to many ways to protect the “exception culturelle Française” against the perceived pervasion of English words. This went from forcing advertisers to include the translations of all English words on billboards and creating new French terms aimed at expressing concepts that originated in English, to overtly criticizing French politicians who dared to express themselves in English. Needless to say, these attempts have so far proven to be futile, as any Frenchman would most probably call his BlackBerry a ‘smartphone’ and not an ‘ordiphone’, be a fan of ‘culture mainstream’ and watch ‘live shows’ thanks to his ‘premium’ TV subscription. Although this situation is likely driving the old sages of L’Académie Française crazy, one cannot escape reality.

Evading evolution

When it comes to the Arabic language, the issue is much more complex but needs to be addressed if the language is to remain future-proof and help advance Arab civilization and its global role.

Being the language of the holy Koran, one can understand people’s reticence of and even outright opposition to touching the Arabic language. Much more than a language, Arabic has always been one of the most important elements binding the Arab world together in this immense geographic area, stretching from the Gulf to the Maghreb.

Its religious significance has rendered it an inherent part of the Arab identity — perhaps one of the few identity elements on which Arab nations still agree, reinforcing the chauvinistic attitudes aimed at “protecting” it against perceived threats from other languages. Yet, one can also argue that when God chose the Arabic language, he did not choose only Arabs to be Muslims, with hundreds of millions of non-Arabic speaking Muslims around the world. Shouldn’t the language of Islam be as open as Islam itself?

Why are we working so hard to petrify it and close it off to natural change? Why should words like ‘shayyick’ (to check), ‘etdawwash’ (take a shower), ‘gawgil’ (to “Google”) or the familiar ‘rimote’ be so frowned upon by purists and considered a threat to the very core of Arab identity and culture?

Going back to the example of other languages, we cannot but think that if the French or the English had “protected” their languages centuries ago, they would still be speaking Olde English and Vieux François.

As for the Arab world, one wonders about the prudence of erecting such barriers, especially when the ‘Golden Age’ of the Arabs coincided with our highest level of linguistic exchange with neighboring states and empires. Back then, Arabs integrated a myriad of Greek, Latin, Persian and Turkish words such as ‘astrolabe’, ‘burtuqal’, ‘jughrafya’, ‘sirwal’ and ‘baqdounis’, and reciprocally enriched other languages with words that are still used to this day, such as ‘alcohol’, ‘alchemy’, ‘algorithm’ and ‘gazelle’. This never once affected the sanctity of the Koran or the integrity of the Arabic language.

Unfortunately, this tradition of dynamic cross-fertilization and openness is clearly having a hard time nowadays, as seen in the schizophrenic linguistic behavior: on one hand, people regularly make use of foreign words such as ‘computer’, ‘email’, ‘cornflakes’ and ‘zen’ in their everyday life, while on the other, language authorities and institutions are investing tremendous resources and energy to literally create new Arabic words matching these new concepts. It is hard to believe that such efforts will succeed in our region when they are obviously failing in other parts of the world, including in such a linguistically chauvinist country as France. One cannot take the same actions and expect different results.

Missing the point

Instead of focusing on reinventing the wheel by trying to come up with purely Arabic words for innovated concepts and ideas, shouldn’t we instead focus those resources on trying to create new concepts and generate new ideas ourselves? The belief that preventing the use of foreign words constitutes a rampart for the Arab identity is an illusion, and only serves to deflect attention from the real problem, which obviously lies elsewhere.

Arab identity was less endangered by the fact that it did not have a homegrown word to describe ‘penicillin’ than by the fact that it did not invent it in the first place.

Besides the fact that the obstinate desire to reject the influence and assimilation of foreign languages and cultures constitutes the prelude for the establishment of a closed, static and self-centered civilization, such a sectarian attitude can lead to an unhealthy dichotomy between everyday language practices, which are spontaneously open to other influences, and a “theoretical” language that only exists in books and is therefore bound to fall victim to the lack of usage, much like what happened to the Latin language.

The flourishing of a civilization stems from its ability to efficiently and intelligently follow the course of time by continuously and spontaneously enriching itself with new elements while being able, in turn, to shed its light on other nations and societies. This give-and-take scheme also applies to languages, especially Arabic, which fortunately happens to be spoken in a key geopolitical area where numerous economic, social, cultural and political currents converge.

The rising potential and influence of Arab media and communication channels can become key to such a success, as they will help further anchor the Arabic language in this era, and could help slowly revive a modern Golden Age whereby this region would once again become an incubator of knowledge, creativity and ideas that it can communicate to the rest of the world.

 

 

November 3, 2010 0 comments
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Shebaa still simmering

by Nicholas Blanford November 3, 2010
written by Nicholas Blanford

 

In a recent conversation with a Hezbollah fighter, up popped the subject of the Shebaa Farms, that sparsely populated mountainside tucked into Lebanon’s southeast corner.

The fighter hinted that attacks against the Israeli troops manning a handful of outposts on the lofty peaks of the Farms could soon resume after a hiatus of more than four years. “We just have to deal with the internal front first,” he said, referring to the looming crisis over the Special Tribunal for Lebanon and the expected, possibly imminent, indictments against members of Hezbollah.

There was a time when the Shebaa Farms was viewed as a possible catalyst for a regional war between Hezbollah, Israel and Syria. Ironic, really, given that before Israel withdrew its forces from South Lebanon in May 2000, few Lebanese even knew where the Shebaa Farms lay.

The area was occupied in 1967 when Israel took the adjacent Golan Heights during the Six Day war. While Israeli forces pushed eastward deeper into Syrian territory, their land grab in the northern Golan was checked by the border with Lebanon. However, they discovered that there was some ambiguity over exactly where Syria ended and Lebanon began, thanks to the laxity with which the French mandatory authorities had delineated the joint border half a century earlier.

The Shebaa Farms consisted of some 14 farmsteads populated mainly by Lebanese residents of the eponymous village and its neighbor, Kfar Shuba. During the mild summer months, the villagers farmed the flatter reaches of the valley’s upper slopes. During the cold winter months, most of the farmsteads were abandoned as their occupants descended to warmer climes in the valleys below. The Israelis initially took over the farms on the lower slopes, but within five years had seized the rest of the mountainside to dislodge Palestinian guerrillas who had set up small bases there.

The Shebaa Farms generally remained forgotten except in the memories of a handful of aging farmers yearning for their upland pastures. But in spring 2000 as Israel prepared to end a 22-year occupation of Lebanon, Israel’s determination to keep control of the area provided a loophole for Hezbollah to justify retaining its weapons.

The Shebaa Farms campaign was launched 10 years ago last month, on October 7, 2000, when Hezbollah abducted three Israeli soldiers in a well-planned operation. Not a shot had been fired in anger since the Israeli troop withdrawal five months earlier. And for one Lebanese friend who had lived in the border district all his life, the resumption of hostilities could not have come soon enough.

“Habibi Nick, I am so happy, so happy,” he said, grabbing my shoulder, as explosions from Israeli shelling echoed across the hillside near Kfar Shuba. “For 30 years I have been listening to the sounds of war… the silence in the south over the past five months since the Israelis left has been driving me crazy!”

The kidnapping heralded a sporadic campaign of roadside bomb ambushes, anti-tank missiles attacks and mortar and rocket bombardments over the following six years. The attacks lacked the rigorous intensity of the final stages of Hezbollah’s resistance campaign in South Lebanon, when as many as 300 operations a month were recorded. But Hezbollah always acknowledged that the Shebaa Farms attacks were ‘reminder operations’, intended as an annoyance rather than a concerted effort to oust the Israelis through force of arms.

The Farms soon became an almost-legitimate theater of combat where Hezbollah and the Israeli army could vent steam without risking a broader escalation, such as the one that occurred when Hezbollah strayed from the Farms to kidnap two soldiers near Aitta Shaab in July 2006.

The 2006 war changed the reality in South Lebanon and for the past four years Israeli soldiers in the Shebaa Farms have enjoyed a quiet existence. Despite Hezbollah’s preoccupation with domestic political events since the end of the war, the fighters in the south remain completely focused on the confrontation with Israel and on preparations for the next war.

Whether Hezbollah does resume attacks in the Shebaa Farms remains to be seen. But if they do, it should bring a smile of relief to my war-happy friend in South Lebanon.

NICHOLAS BLANDFORD is the Beirut-based

correspondent for The Christian Science

Monitor and The Times of London

November 3, 2010 0 comments
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Real Estate

Q&A Namir Cortas

by Rayya Salem November 3, 2010
written by Rayya Salem

 

Four years from now, Beirut will have a new community adjacent to Saifi Village. District//S, a 50,000 square meter residential and retail development, will occupy a 13,200 square meter site and promises 22 five-story luxury buildings, with cafes and shops facing onto Italian-style courtyards. Executive sat down with Namir Cortas, chief executive officer of Saifi Modern sal, the Lebanese company that owns District//S, to find out more, while Anthony el-Khoury, CEO and co-founder of the property development firm Estates sal, joined the conversation to offer a sneak peak behind the curtains of District//S.

E Why did you decide to devote the plot to low-rise buildings instead of building high-rise towers like so many other developers have done in the Beirut Central District (BCD)?

NC: This project is in the BCD so already it has to fit with the general master plan. It was an obvious extension of Saifi village and therefore we, and the master planner, decided that the best use for this land would be a more contemporary interpretation of the same original urban directive. Also, the land allows for a district, as it eventually came to be called, because of its size and location.

This site links Saifi Village, Gemmayze and Martyr’s Square and is the gateway to the shopping and central area. The solution that we came up with is nothing revolutionary but essentially creates a city-like atmosphere through functional aspects as opposed to just building a high-rise or a tower. This is why we call it a city within a city. A city is about how people live, which is why we use this slogan: “architecture is inhabited culture.”

E  How did you finance the project?

NC: Like other developers, we use investors, financial backing from several banks and presales to finance it. We’ll tell you [the proportion] when it’s over!

E the architect, Graham Morrison of London-based Allies & Morrison Architects, likened the feel of the project to “simple Italian palazzos” whereby the mixture of courtyards and alleys with residences leads to “inside/outside living.”

Is this how you see it?

NC: A modern architectural language has been used to provide project specific solutions. The intent is to preserve traditional features like raised balconies, loggias, raised gardens, terraces [and] meandering alleys. These are all local features but they have not been repeated here in what I call a generic matter. They have been applied in ways that have been adapted to the project itself so that it would have sufficient harmony and patterns, but within such patterns, be varied enough.

It’s a form of contemporary Mediterranean architecture — I wouldn’t call it Western or European [architecture], it is beyond that. This is now a global world and it’s more interactive.

E How is District//S laid out?

NC: Practically every building has a raised garden on the first floor. And some buildings have a garden on top, as well as on different levels. The ground floor is all retail: above the retail spaces starts the residential areas. There are no offices in this project. There is a cultural center and a gallery to show off artisan’s work and hold exhibitions.

E  Around 30 percent of the project has been sold – are most buyers Lebanese?

NC: All of our initial customers were Lebanese. There has been, more recently, some interest from others. We sold to one European and one Gulf person recently. I think [the Lebanese] will remain the main buyers and users because they are more likely to understand it better.

The Lebanese expatriates who bought [in District//S] are the kind that are constantly here, even if their work is outside. The idea that [local] Lebanese can’t afford an apartment is untrue, even though there is a disparity. Indeed, some Lebanese have become rich because they own property.

AK: You have people who bought [apartments] who didn’t know what the [final] project will look like. They bought solely based on the story we told them.

E  What was the role of G, the sustainability consulting NGO, in the project?

NC: Hopefully we will have a green neighborhood. We do that through G by adhering to certain guidelines, which we will use to obtain a [Leadership in Energy and Environmental Design] certification.

E  Tell us how you went about planning the penthouses. What are some of their amenities?

NC: The guideline for the area [dictates] the height of the penthouses or “sky villas.” We chose to have [higher buildings] only in certain locations, generally around the corners, to use them sparingly and to lower the density of the project, and give them the additional amenity of an adjoining terrace on the roof of the adjacent building. Each one has a pool, and they enjoy an open terrace area. We have sold one penthouse recently. But we notice there is higher demand on smaller units.

E  Is this trend for smaller apartments here to stay?

NC: This is a general feature we will see more of, partly due to demographics: there are younger people buying. Prices have gone up not just for property, but for construction and power and fuel. So the running costs of the larger apartments have become… a consideration in people’s decisions.

E  What kind of retail tenants are you targeting?

NC: Interest has been coming from various parts [of the retail sector]. This will be an attractive, arty area. A little like Saifi Village, but more animated. We expect to have more cafes, more walking space, galleries, gift shops and boutiques. It’s helped by the fact that all the internal alleys and courtyards are pedestrian.  Car access will only be to the underground [parking] or the external pavements.

E  Once the units are occupied, how do you plan to control traffic in the vicinity?

NC: We have one double-ramp [whereby two lanes can exit and two lanes enter] and one single ramp. Obviously we have done all the traffic impact research. We have been generous in providing parking spaces and provided more than what is required to address the needs, [something that has] not been sufficiently addressed by other developments.

E  In terms of design, how flexible are the interiors for end-users?

NC: We worked on the design of the project with input from our marketing and sales people and direct input from actual or potential clients. As such, aided by the shape and size, we designed the flats from the inside and then added the facade. This makes it easier to have modular solutions and I believe it has helped us come up with more adequate layouts for the interior. For instance, people can buy two apartments on the same floor and merge them.

E  Tell us about the process that the architects went through, since it was their first time working in Lebanon?

AK:  The architects came and visited Beirut, we invited them on several occasions. They visited all of Beirut and the old Ottoman sites, even visiting cafes to understand the lifestyle… how people interact. We want to preserve the ideas of the old style and modernize and create continuity for our heritage. They redesigned several models, in fact they adjusted it four times, to make sure even the sunlight and wind circulates well. They were very precise about the angles of the street corners, the views from each unit, and making sure the horizontal and vertical lanes that run throughout the plot are unobstructed so there are no blocked views from alleyways.

E the architect also mentioned that none of the buildings are parallel, creating informal alleyways between them…

AK:  We want to keep people interested by having different widths of pedestrian walkways. At the plot entrance they are 4 to 5 meters wide and then open up to 8 meters wide creating “meandering alleys,” and thus none of the buildings are exactly parallel.

NC:  When you live in such proximity, vibrancy has to happen.

November 3, 2010 0 comments
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Business

Change is in the airwaves

by Karim Sabbagh November 3, 2010
written by Karim Sabbagh

Over the past decade, the telecom industry has helped to fuel the digital transformation of entire industries, economies and societies. But now the sector is entering a more challenging time following years of significant growth.

In order to stay ahead of the game, operators must build the next generation of high-speed fixed and mobile networks to keep up with customer demand; doing so will require massive investments. At the same time, they must invest in innovation and the development of new strategic capabilities. But operators are hindered in these efforts. Their traditional sources of revenues are becoming commoditized and many are struggling to find new unique services to catch the attention of their customers.

To meet all these demands, operators must strive to build leaner, more adaptive, modular and increasingly complex business models. And they must acquire the capabilities needed to ensure that these new business models can succeed, even as they continue to invest in next-generation fixed and mobile infrastructures.

Forward-looking business models must be based on a deep understanding of three overarching trends that are driving the industry into the future.

The first trend is customer ubiquity. Consumers and businesses demand constant and universal access to digital applications and content: The more bandwidth and services that operators provide, the more their customers will consume. This demand will put huge burdens on operators’ current fixed and mobile networks. Data already makes up the vast majority of network activity; much of it driven by video streaming on the web and it just keeps growing: video streaming in the United States has increased by a hefty 78 percent per year since 2005. The continuing rise of mobile ‘apps’ — the hundreds of thousands of services available on smartphones and other devices everywhere — will only intensify the phenomenon of customer ubiquity. Operators will lose ground to technology companies like Apple and Google unless they find a way to cash in on the mobile app business, which is expected to generate $40 billion in revenue by 2014.

The second trend is technology modularity, in which networks, services and applications are rapidly evolving and shifting away from vertical integration toward modular, open systems. Different networks (such as fixed, wireless and broadband) will serve end-users directly, delivering the required ubiquitous connectivity. Both applications and service offerings such as on-demand movies and gaming will likely be based on systems that will essentially be independent from the infrastructure through which they are accessed. This means that parts of the entire system can be built not just by operators but by a variety of non-industry rivals, as they try to gain a share of future revenues.

The third trend is industry innovation. Operators used to focus on protecting their core business — the development of large-scale networks — rather than experimenting with smaller initiatives. As a result, they have left themselves vulnerable to a vast array of competitors developing apps and services.

New models for a new industry

Once operators understand the implications of these three trends, they must select, design and build new business models — and the accompanying capabilities — to respond to and benefit from them. There are four distinct business models that will shape the future of telecom operators:

Network guarantors use their network assets to provide widely available and open infrastructure and timely, reliable, cost-efficient services. Their primary customers are companies operating under the business enabler model, which can take advantage of their infrastructure to offer more advanced services to their own customers. This model will require operators to be efficient in their planning, provisioning and operations, and to offer high levels of quality in terms of network reliability and service levels.

The business enabler is a “double-sided” business model. On one side, it provides end users with the broadband services they need. On the other, it helps application and service providers manage their own businesses, providing them with wholesale broadband, managed services, transaction and billing support, and platforms such as hosting and cloud computing. To make this model work, operators must cultivate their capabilities in partnership, offer flexible service customization, and aggregate their customer bases and service providers.

Experience creators capitalize on consumers’ thirst for new apps and services, as well as the needs of companies in any number of industries to digitize their businesses. They will provide consumers and business customers alike with the ubiquitous connectivity they demand — with targeted applications, fresh content and a distinctive experience — as well as the ability to create and distribute their own content. To do so, they must be extremely innovative in their products and services, as well as dedicated to serving different customer segments effectively.

Each of these three business models offers operators a way to compete in increasingly fragmented telecom markets. To extend the gains made in one market by replicating the model in other markets, there is a fourth business model that operators should consider — especially if they already have significant scale and scope, as well as operations beyond single markets or regions.

This model, the global multimarketer, offers a path for operators to make the leap to becoming truly global entities. Thanks to their inherent strengths in branding, efficiencies and reach, global operators are proving stronger than their local rivals. Successful global multimarketers are able to benefit from the cost savings available through sheer scale, as evidenced by the efficiency in capital expenditures that a select group of global operators have gained in some markets.

The only way operators can counter the numerous threats they face is by creating new business models that can effectively respond to the rapid changes overtaking the telecom industry. Operators that understand the need to move away from their traditional vertical organizations and to develop one or more of these business models must ultimately transform themselves into one or another of the modular organizations described above, with the ability to replicate their capabilities and business models across different markets and customer segments.

 But building those capabilities and business models will take time. The winners will be those operators that are first to understand the need to make this transformation, and then move fast.

November 3, 2010 0 comments
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Since its first edition emerged on the newsstands in 1999, Executive Magazine has been dedicated to providing its readers with the most up-to-date local and regional business news. Executive is a monthly business magazine that offers readers in-depth analyses on the Lebanese world of commerce, covering all the major sectors – from banking, finance, and insurance to technology, tourism, hospitality, media, and retail.

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