With the mass black market of pirated materials ranging from software, music, cable television and movies so prevalent in most countries of the Middle East, governments and industry associations are working hard to combat this rampant problem.

In this region, software piracy is the norm rather than the exception with rates in most countries above 50%, while the global average hovers around 35%.

Protecting intellectual capital

With IT being an engine for economic growth through high paying jobs, assisting other sectors, and increasing tax revenues, protecting the integrity of software development and application is key. Business Software Alliance (BSA) and International Data Corporation’s (IDC) Global Software Piracy Study estimated that the IT sector supports 1.1 million businesses and generates $900 billion annually in tax revenues. With expected growth in IT between 2004 and 2009 set at 33%, that percentage could increase as much as 45% if software piracy decreases 10 points.

This prompted Muhammad bin Ibrahim al-Tuwaijri, the Arab League’s assistant secretary general for economic affairs, to declare piracy of all forms an ‘epidemic’ costing the Arab World upwards of $50 billion a year.

As a result, “Arab World Protect 2008: The First Arab Consumer and Brand Protection Forum” will be held in Jeddah in October to raise awareness of the economic ramifications and safety risks posed by piracy as well as to develop strategies to combat the problem.

Business Software Alliance (BSA), the foremost

organization dedicated to promoting a safe and legal digital world, has started partnering with many local stakeholders in the region to assist governments to combat this problem.

At one time, Lebanon was one of the Top 10 countries in terms of piracy and remains on the US Trade Representative’s Priority Watch List of worst case offenders, despite BSA’s recent calls for Lebanon to be removed. While intellectual property rights exist in Lebanese law, which conformed to most international standards, law enforcement and government agencies were unable to tackle the problem.

“This is when the private sector stepped in because it was their products that were being stolen,” explained Aly Harakeh, license compliance manager for Microsoft and official spokesperson of BSA in Lebanon.

In 1999, the private sector engaged officials and law enforcement by lending their expertise and training on identifying originals from counterfeits. Since that time piracy rates in Lebanon have decreased from 98% to 73% today. Also, in March 2006 Lebanon enacted a Cyber Crime and Intellectual Property Rights Bureau (CCIPRB) under the supervision of the Ministry of Interior, with 33 members. Mandated to crack down on copyright infringers, the task force began to conduct spot checks and market sweeps to catch businesses dealing in the distribution of unlicensed intellectual property —

Harakeh explained, “Since the bureau took over the task, it became more effective. They did a number of raids and went to areas that were considered to be inaccessible,” confiscating volumes of illegitimate intellectual property.

A measure of success in enforcement

In early 2007, BSA and the bureau publicly destroyed about 150,000 CDs and DVDs loaded with pirated software, music, games and music, while the investigations and crackdowns are continuing to happen. Law enforcement is also taking intellectual property rights infringement more seriously and handing down stiffer penalties on those convicted.

BSA is working to sensitize the public sector towards the importance of finding a balance between enforcement and awareness. As Harakeh pointed out, “awareness in itself would give enforcement some weight and show the seriousness of the situation. It would also help Lebanon to position itself as a nation synonymous with innovation and creativity.”

Harakeh also believes that intellectual property rights enforcement would also help to draw more investment both foreign as well as local as investors and businesses see that their work will be protected.

Across the region governments are beginning to take intellectual property rights seriously with the help of the private sector. Industry associations such as BSA,  and even the Arab League, are stepping in to help enforcement of policies and setting up task forces that are now in place to curb the problem. In Saudi Arabia, an unnamed firm was sued by BSA for $1.3 million in March 2008, and the government canceled that company’s commercial registration with threats of more raids and lawsuits to come in the kingdom.

Anti-piracy raids have also hit computer resellers throughout the region with a reseller in Oman facing six months in jail and ordered to pay Microsoft $5,200 in compensation for selling PCs loaded with unlicensed Windows XP and Microsoft Office 2007.

At the regional level, piracy started to decrease in 2005 to 57% but rose again in 2006 to 60%. Generally, high-piracy rates are associated with the high growth areas of which the Middle East is a part. With one-third of PC shipments going to emerging markets, they are only buying around 10% of software exports, according to IDC. However, piracy is dropping also in part by the influx of branded laptops with preloaded legitimate software, which continue to gain in market share relative to desktop systems assembled locally without any legitimate software.

To understand better what this means, IDC has calculated the costs throughout the supply and distribution chains. According to its report for BSA, for every $1.00 in software sold, there is at least another $1.25 in services sold to design, install, customize and support that software. That software and those additional services then drive approximately another $1.00 of channel revenue, with most of this additional service — or channel revenue — going to firms which operate locally. In countries with piracy rates of more than 80%, for every $1 spent on PC hardware, less than $0.07 is spent on legitimate software.

Unfortunately, the continuing growth of internet penetration, especially in emerging markets and mostly among consumers and small businesses, and the increased availability of pirated software, particularly over the internet and from peer-to-peer (P2P) networks, is pushing piracy rates higher still. According to the IDC, already more than 60% of all internet traffic crossing the web is driven by P2P downloading, and almost two-thirds of that is from emerging markets.

This could make ensuring intellectual property rights and fighting piracy even more difficult to battle.

A few years ago there was a trend of irresponsible hackers, usually teenagers, releasing worms and viruses on the internet just for the fun and excitement of it — they were also known as “ethical” hackers.

But now there is a new breed of cybercriminals — highly tech savvy, sophisticated full-time professionals in a full-blown, global black market involved in cybercrimes like identity thefts, bank and e-commerce fraud, theft or manipulation of data or services via hacking. On the other end of cybercrime spectrum are cyberstalking, harassment, child predation, extortion, blackmail, stock market manipulation, complex corporate espionage and planning or carrying out terrorist activities.

Cybercrime is a criminal activity in which a computer or network (mostly internet) is an essential part of the crime. The computer or device may be the agent of crime, the facilitator of crime, or the target of crime. With tens of millions of online users around the globe the ratio of cybercrimes have surpassed their equivalents in real world. Recent research showed that in Britain alone, a new cybercrime is being registered every 10 seconds. Interestingly, 90% of cybercrimes stay unreported — either due to the victim’s unawareness or the absence of reporting mechanisms in most developing countries.

Cybercriminals use different methods to strike, which are called crimeware programmes, like keystroke loggers, viruses, rootkits or Trojan horses. Software flaws or vulnerabilities in computer systems or networks provide the foothold for the attacker. For example, criminals controlling a website may take advantage of vulnerability in a web browser to place a Trojan horse on the victim’s computer when the victim is visiting that malicious website. They can also be delivered to a victim through an email message where it masquerades as an image or joke.

After it is installed, the Trojan horse lurks silently on the infected machine, invisibly carrying out its misdeeds, such as downloading spyware, while the victim continues with their normal activities, oblivious to the cyber assault.

Top 12 spam relaying countries

The cost of “free” software

Most often, spyware is installed unknowingly with some other software. For example, if one installs a “free” music or file sharing service or downloads a screensaver, it may install spyware. Then the spyware covertly monitors the activity on the computer, gathering personal information, such as usernames, passwords, account numbers, files and even driver’s license or social security numbers. Some spyware focuses on monitoring a person’s internet behavior like emails one writes or received Instant Messaging (IM) conversations. After gathering this information, it then transmits it to another computer, usually for advertising purposes.

A Bot — short for ‘robot’ — is another sophisticated crimeware. They perform automated tasks on behalf of their masters (cybercriminals) like sending spam emails or blasting certain websites off the internet as a result of coordinated “denial-of-service” attacks.

Since a bot-infected computer obeys its master, the victim machines are called Zombies. Bots spread themselves across the internet by searching vulnerable, unprotected computers to infect. When they infect an exposed computer, they quickly report back to their master. Their goal is to stay hidden until they are awoken by their master to perform a task.

Sometimes the victim comes to know through their internet service provider that his machine is sending spam emails to other internet users. Sometimes bots work in a network of infected machines called a “botnet” that is controlled by a command and control server. Sometimes, botnets stretch all over the globe with thousands of Zombies at the disposal of a master.

Then there is the online con game — Phising. It uses spam emails, sometimes up to millions of messages which appear to originate from a well-known and trusted company. The emails have a business-like language and request the user’s personal information. Sometimes they even direct the recipients to fake websites that appear to be authentic. Then, again, keystroke loggers or Trojans are inserted into victim’s machine. And the next time the victim visits the website of his bank or enters credit card information it is captured and passed on to cybercriminals.

Internet-related crime should be reported to appropriate law enforcement investigative authorities at local, federal or international level depending on the scope of the crime. And one should protect one’s personal information and computer by installing security software with the latest patches and updates.

E What is Jordan’s overall information technology strategy?

At its inception back in 1999, int@j’s efforts were directed to devise a comprehensive framework for the ICT sector of Jordan in response to a challenge put forward by his Majesty King Abdullah II in 1999 for the private and public sector to prioritize the development of the IT sector. The outcome was the REACH initiative (Jordan’s ICT blueprint) that was devised by int@j and supported by the Ministry of ICT and non-governmental donors (AMIR-USAID). The REACH Initiative focused on modernizing Jordan’s regulatory framework, enabling environment, advancement programs and human resources.

During 2007, Jordan’s ICT sector accomplished a gigantic step toward a better and more prosperous future by launching the National ICT Strategy (2007–2011) to produce a comprehensive and market-driven ICT strategy that benefits the country as a whole. Similar to the 1999 REACH initiative, the National ICT Strategy (NIS) was blessed with His Majesty King Abdullah II’s endorsement and support. The Ministry of ICT and other non-governmental donors such as the USAID-funded SABEQ played critical roles in the development of this strategy.

With the creation of Jordan’s NIS, int@j led the sector and key stakeholders towards an ambitious future for the ICT industry. Throughout the implementation of its five-year strategy, Jordan envisages the creation of 35,000 ICT jobs, increased revenues of $3 billion, and 50% internet usage rate amongst Jordanians.

E Speaking of NIS, what is its implementation methodology and what have you achieved so far in the past few months?

The National ICT Strategy is written in the form of an actions-oriented strategic and tactical plan, with int@j being commissioned to publish quarterly reports that describe progress achieved, hurdles faced, and the means that will be implemented to overcome them.

In order to achieve its strategic objectives, NIS was divided into four pillars: regulation and investment, labor issues and education, research and development and connectivity. Our pillars have been actively at work to realize the strategy’s vision and objectives, and here I’d like to thank our volunteers for their relentless efforts and contributions.

Among the significant achievements that our pillars have accomplished so far are: identifying companies that offer quality certification services thus assisting Jordanian ICT firms to upgrade their businesses and quality assurance processes for increased efficiency, quality, and certifications thereof; successfully advocating the extension of income tax exemption of export services to the year 2015; creating opportunities for internships for women in the ICT sector through HM Queen Rania’s Initiative on Empowering Women; establishing relationships and cooperation between the private sector and the universities to assist in building more ICT relevant curricula; and creating opportunities for private sector organizations to embrace and participate in classrooms thus building a base of prepared graduates for ICT roles.

Furthermore, the strategy has initiated critical steps toward amending existing legislation to ensure the adequate protection of intellectual property rights, such as: beginning dialog on the issues of increasing internship opportunities and starting to offer incentives for companies that work with universities; establishing cooperation with the TRC to promote market competition through numerous new regulations such as an initial high-level offer of unbundled local loop services to increase competitiveness among all providers; maintaining ongoing dialog regarding appropriate pricing and service models accompanied by increased cooperation; developing an action plan to articulate the costs and mechanisms for providing each student with a computer for them to use.

Progress towards the National Strategy will be gradual. Implementation of the strategy requires dedication and commitment from all stakeholders, including industry, government, the higher education sector and int@j.

E How big is the Jordanian ICT sector? How much did it grow in the past years?

We have come a long way. It seems like yesterday when, back in 1999, a small group was called for a meeting with His Majesty King Abdullah to discuss establishing an IT industry that harnesses our most precious resources, our human resources. Back then, our total industry turnover was less than $300 million, employment across the sector was below 1250, our telecom infrastructure was seriously lagging behind and investments were close to zero.

At first it seemed like an insurmountable task, yet realizing we had the country’s leadership behind us we took advantage of a once-in-a-lifetime opportunity and embarked on a journey that redefined our lives, gave hope and opportunity to the youth of our nation, and equally important, proved that private sector leading initiatives with full government backing is truly the only way forward. As a result of His Majesty’s vision, the government’s support, and our collective efforts, total ICT turnover is now close to $2 billion with exports over $200 million, and employment around 15,000. The ICT sector represented around 12% of GDP, back in the year 2000, $250 million; today it stands at $1.8 billion. This sector has grown 50% year after year for the past years. Yet, this is not enough.

E As we speak, int@j will soon celebrate its eighth anniversary. How do you think these past years went and what is its initiative for 2008?

The Information Technology Association of Jordan (int@j) has grown from 21 members in 2000 to over 110 today. Membership is open to all companies operating in Jordan in the fields of software development, support, application, telecommunications, value added assembly, and distribution of ICT products and services. It is also open for suppliers and users to these industries, universities, and others supporting ICT training and promotion. Int@j’s members range from the largest software developers to smaller start-up companies.

While in fact a lot has been accomplished, we believe a lot more can and should be done, particularly in the areas of academia and industry cooperation, sector capacity building and bridging the digital divide to ensure all Jordanians have an equal opportunity to share in and contribute towards transforming Jordan into a true knowledge based economy.

The year 2008 will present additional and new challenges in accomplishing more and more of the strategy’s objectives and targets. The list of tasks is long and tedious, but by continuing to work together in harmony and dedication I am more than confident in that we will celebrate yet another successful year next anniversary. Int@j is poised to undergo a number of fundamental changes which will substantially boost the association’s value proposition and offerings to its members and stakeholders. This year will witness a new influx of member services that foster networking, create business opportunities, and support our members in strengthening their organizations’ capacities and capabilities. We also plan to establish int@j as the ICT sector’s official and most trusted information hub, advocate vividly on behalf of the sector, and engage in a rich menu of services that are designed to meet our members’ needs and expectations from their association.

This year’s most celebrated accomplishment will be the fourth Jordan ICT Forum, scheduled December 2008. Once again, this event will showcase the capabilities and strengths of our growing industry in a format that is appropriate for our sector. In addition to valuable networking opportunities with regional and global industry leaders, the informative panel discussions and keynote speakers will offer ample information about global ICT trends and developments.

The lack of a modern ICT infrastructure in Lebanon has hindered internet capabilities, causing massive inefficiencies for individuals and businesses. Unlike its neighbors, Lebanon still lacks broadband leaving many sectors without the ability to transfer files electronically. This inefficiency increases costs.

By conservative estimations Lebanon’s IT sector grew 12-13% year-on-year, according to Gabriel Deek, president of Professional Computer Association (PCA). He believes that if Lebanon had better ICT infrastructure that growth could reach 20-30%. Cisco, with its partners, has stepped in to help Lebanon get back on track and create a network that in the end will give individuals and businesses cheaper and better access to the internet.

The Partnership for Lebanon began as a crisis intervention by US-based firms Cisco, GHAFARI, Intel, Microsoft and Occidental Petroleum following the 2006 War.

“The Partnership for Lebanon came about following the war in 2006 and it was mainly to see how the private sector in the US could come in and do some sort of assessment and see how it could use its resources to help revive Lebanon,” explained George Akiki, program director for Cisco Systems in the Partnership for Lebanon. “We came in and started collecting money from our employees, CEOs, and friends and gave donations and grants to local NGOs and organizations on the ground, mainly in the south, that were doing restructuring efforts,” he said.

After that, the collaborative effort created a framework that ended up being the Partnership for Lebanon. The initial activities centered on reconstruction efforts mainly in the South, which became the first work stream (response and relief) of five, including connecting communities through online centers, workforce training, job creation and ICT infrastructure. This framework came about in January 2007 and in general comprises socio-economic efforts to put the country on the path of economic growth.

“The main focus is to establish public-private partnerships (PPPs) to work on replicable models and initiatives for whenever we disengage we want the local community to be on a path of sustainability for whatever initiative we started,” Akiki explained.

The Partnership focused on the most pressing need for businesses in Lebanon – ICT infrastructure. “ICT infrastructure is critical and we engaged initially with some tactical moves. The Internet Exchange Forum and the International Internet gateway came about as initiatives– the country had a “small pipe” coming in for internet, in layman’s terms,” said Akiki. The upgrade required higher technology routers, which Cisco donated to Ogero, the state-run fixed-line telecommunications provider and they are currently being implemented as part of a larger project.

The Partnership worked on the Beirut Internet Exchange (Beirut IX) to keep local ISPs in the country. The presence of an Internet Exchange Point (IXP) redirects the traffic into Lebanon instead of sending it on expensive international leased lines. By having traffic move through local bandwidth, end users will connect faster to the local web-server, while lowering the costs for ISPs. “The Internet Exchange Point allows us to save money and time. The Exchange Point is more important when transferring video or other large files – speed becomes even more of an issue.”

The Partnership is also assisting the Telecommunications Regulatory Authority (TRA) and officials on the national broadband strategy initiative, which focuses on the whole infrastructure of the country with the vision that five or ten years down the road everyone has access to high bandwidth to help businesses compete regionally and globally. “We have gathered experts that we have globally that have done it in other countries and advising on regulatory policy and the business case of what it would take to do this. We have an advisor with an investment banking background who has worked for two or three months to develop a model on the business case. We have also advised on the network architecture for the fiber optic core then later expanded to wireless, DSL, and other technology,” explained Akiki.

The Partnership presented its full report to the TRA in January of this year at a stake holder’s workshop on how to go about bringing broadband to the country and all of the issues surrounding it. The workshop included professional leaders across many sectors, from broadcasting to hospital administrators who presented their views on how broadband would improve their work. The TRA has taken about 80% of the Partnership’s recommendations into their plan for issuing licenses next year, according to Akiki.

“We see our role not as a traditional consultant as someone who simply delivers a report. We are here to see what it would take to put a real program in place and make it happen,” said Akiki. The next step for the Partnership is to get more parties involved at the public, private and NGO levels.

Akiki concluded, “What we are trying to do is set the priority where ICT is at the top. In every funding discussion and priority set in any department it should be at the top.”

Established in April 2000, EFG Hermes’ Telecom Fund invested in telecoms, media, IT companies both listed and unlisted in Africa and the Middle East. Back then, the sector in the Middle East was very different with 90% of the market operating on government monopolies. In 2002, a wave of liberalizations took place as various countries signed on to the WTO.

“What we saw from 2002 until today is massive growth in the telecom sector and the fund was able to capture that growth,” explained Heshim Omran, fund manager at EFG Hermes. “Before liberalization took place the average penetration in the region was less than 20%, today that figure is closer to 50% — that gives you a good indication as to how much growth.”

Prior to 2007, the fund’s investor base remained stable with few leaving the fund. Omran explained, “They have seen what has happened in other emerging markets in Asia and Latin America. They felt that the region would respond the same way and it has.”

The mandate’s unique geographical base — including access to both Africa and the Middle East — has also helped to drive its popularity, which hit its height about two years ago when it was the best performing fund in the region with 57% returns. So far the fund has turned around 318% since its inception on a total return basis.

The African market is looking particularly appetizing right now, in large part because a lot of GCC companies are seeking expansion and have benefited from the economic situation in the GCC. For Omran, “GCC investors have underleveraged balance sheets and have been expanding and using their financial clout to basically buy assets across Africa which has given growth tremendously.”

Omran believes that there is a revitalization of the interest in the telecom fund because of the geographical focus and a sector that will benefit for any kind of macroeconomic growth. “I think that the growth we have seen in Africa will even outdo the growth we have seen in the Middle East,” he said.

Expectations for the GCC, with most countries having mobile penetration rates over 100%, are that usage trends of having separate phones for work and personal life will continue. According to Omran, “Growth is driven now by new services coming in and less actual top line growth. So it becomes a service strategy of how to get people to use their phones more than getting people signed up to use their mobile phone.” Consolidations are expected to take place to branch out into other markets.

In North Africa, the area is still under-penetrated with a growing population. In Egypt, mobile penetration rate is around 33% in a population of 75 million people, leaving the country with a lot of growth potential. Omran cited Mobinil as an example of what can be expected, saying “they’ve been around since 1996, in 2007 in terms of subscriber growth it was their largest growth year ever. So there is still a lot of room to grow.”

Omran believes that media space, both broadcast and print, has carries the same potential as telecoms for growth. “Five years ago you could count on one hand the number of broadcast channels in the region. Today that number has quintupled. People want more information that is driving growth.”

In the farther future, he thinks that at one point telecoms and media will converge “because the telecoms have the infrastructure and media has the content.”

E What is the potential of the Lebanese telecom sector? How does it compare to other small markets such as Bahrain and what are the impediments it faces?

The Lebanese mobile telecommunication sector is state-owned, thus limiting the capacity of the two GSM companies to mere operations. This fact keeps the market withheld from its real potential that will only be felt through liberalization and proper competition. The above is confirmed by the Lebanese GSM penetration rate which is around 33% as opposed to other markets with a similar GDP and purchasing power, where penetration has reached 80% or even 90%.

Furthermore, the Lebanese mobile market is continuously eager and enthusiastic for new services. The Lebanese consumers are considered to be ideal in the region due to their particular passion for mobile telecommunications and their permanent demand for new and diversified services.

In case of privatization, given the low penetration rate, the mobile market will definitely witness a boom and growth rates will skyrocket.

E What is mtc touch’s strategy in Lebanon? How does it fit in the overall Zain strategy?

Since its entry into the Lebanese market as a manager of one of the two GSM networks, it has always been Zain’s objective to own a mobile operations license in the country. This strategy persists until now and Zain is eager to see the telecom sector privatized so that it can participate in the process. Zain believes that the Lebanese telecom sector still has a long way to go to reach its true potential, especially in terms of penetration rate and diversified technologies and creative offerings. This is why, mtc touch has been striving in the past four years to upgrade the quality of service in the network and introduce as many state of the art products and services in the market as possible, trying to quench the Lebanese consumers’ thirst for an improved mobile experience despite the constraints imposed by the current economic and political situation.

E What have you accomplished during your four years in Lebanon?

Mtc touch accomplished a lot during the last four years despite all the constraints. It has proven to be the best mobile provider seen in the market and the leading GSM (in terms of market share with a 52% stake), further to a survey conducted at the end of 2007 by Ipsos-Stat, as well as the most recommended brand in telecom due to the services and the quality and diversity of its products.

In fact, mtc touch has lived up to its name as being the pioneer of mobile telecom in Lebanon by introducing new services in the Lebanese market, some of which are exclusive to mtc touch.

On another level, mtc touch received a prestigious certificate, nominating the company for the “Highly Recommended Employer” award during the “IIR Middle East Business Achievement Awards”. This certificate comes as recognition to the investment mtc touch made in its human capital, bearing in mind the crucial role that this capital plays in the company’s overall progress and well being.

Mtc touch was also among the first telecom operators in the region to be awarded the ISO 14001 Environmental Management System Certification. This achievement comes as a result of the company’s long-lasting commitment to environmental protection which is reflected in its continuous pursuit to reduce and recycle waste and to efficiently use energy.

And lately, mtc touch added another achievement by being among the first mobile operators in the world to launch the revolutionary roaming-on-aircraft service that allows mtc touch customers to make and receive calls as well as to send and receive SMS while traveling on aircraft. This launch comes in line with the direction of our parent company Zain that initiated the service in collaboration with AeroMobile in March of this year in Jordan.

On the technical side, mtc touch was able to cope with the increase in the market demand by adding 250,000 customers despite its under-dimensioned network, to satisfy customer need of new lines. It also extended its coverage to 98.5% of the Lebanese territory by adding 85 new sites nationwide and enhanced its prepaid customers’ experience by introducing the Intelligent Network Platform, allowing them to enjoy new and advanced services.

Moreover, mtc touch improved its data services by introducing data roaming services and increasing the data throughput capability in Beirut by adding EDGE. Hence, visitors to Lebanon can currently use wireless and mobile email solutions, web browsing or other data services they have subscribed to in their home country and thereby stay connected when roaming on mtc touch network.

E How does mtc touch distinguish itself from the competition?

Despite the almost-absence of competition, mtc touch succeeded in developing a substantial competitive edge in terms of customer experience by effectively introducing a broad range of convenient, innovative and flexible services that witnessed a tremendous and unprecedented take-up in the Lebanese market. As a matter of fact, new services like Credit Transfer Prepaid to Prepaid and Credit Transfer Postpaid to Prepaid are breaking regional records with regards to usage and penetration, while new convenient on-line payment & recharging channels through bill e-pay and e-recharge services and new roaming services (Prepaid SMS Roaming & GPRS Roaming) are witnessing a considerable boom.

E How do the networks in Lebanon compare to others in the region? What are you doing to remedy current network difficulties and short comings?

Mtc touch network performance is among the best in the region, despite the existing external factors and limitations.

In fact, mtc touch is optimizing on a daily basis its network resources to overcome as much as possible the high impact of external interference sources in Lebanon and is upgrading some network elements in collaboration with the Ministry of Telecommunications to be able to cope with the increase in the customer base and inbound roamers overloading the network.

Mtc touch was able during the July 2006 War to maintain its network full availability despite having more than 25% of the network down due to completely destroyed hub sites, through rerouting and restoration activities carried under difficult circumstances.

Mtc touch was also keen to upgrade its core and backbone network elements to up-to-date hardware and software releases to ensure the best network status and customer experience.

In addition, mtc touch is currently upgrading the billing system to the latest state-of-the-art technology providing substantial benefits and advantages to the end users.

E Now that mtc touch has signed a six-month contract with the government of Lebanon, what is the next move for mtc touch? Are you confident that you will stay in Lebanon?

As previously indicated, Zain entered the Lebanese market in the hope of acquiring a mobile operations license and not just to manage an existing network. Zain has proved in all the markets where it has established presence that it will put all the necessary efforts and right investments in order to improve the life style of people and contribute effectively to the well being and economic growth of the country. We surely hope that with privatization we will have another chance to prove this commitment and vision once more in a country which is dear to us.

E How does Lebanon’s special circumstance of relying on telecom tariffs affect your activities?

The mobile telecom tariffs in Lebanon are some of the highest in the world. We believe that the only way to reduce those tariffs is by opening the market for true competition through privatization and regulation.

In the meantime mtc touch is exerting all efforts, within the limits of the management agreement signed with the government, to provide the eager Lebanese consumer with state of the art convenience and advanced services in addition to improving the overall customer experience.

On the other hand, and due to the importance of the telecom sector as a major source of revenue to the country, mtc touch realizes the weight of the obligations and responsibilities it has to cope with.

This is why our technical teams are working day and night to insure continuous optimization of the resources of the network to maintain its availability and quality of service and allow it to carry all the traffic which translates directly into generated revenue.