Lebanon on Cusp of Network Blackout as Dispute Grows with Telecom Workers

Lebanon’s caretaker Minister of Telecommunication Johnny Corm warned of country's military likely takeover of the state-run telecom company Ogero amid a growing dispute between the government and the company’s employees, who have been on a week-long strike demanding pay increases. 

The news is only the latest in the full-fledged collapse that Lebanon is undergoing, as it faces an unprecedented economic crisis, political and security void.

“I spoke with caretaker Prime Minister Najib Mikati this morning and he asked me to [allow] for the intervention of the Lebanese army and for us to take over Ogero,” Corm said in an interview with the local Radio Liban Libre station.

“I will not see citizens be taken hostage. The internet is a basic need and is necessary for the continuity of life and any interruption is prohibited,” he added.

Ogero employees began an open-ended strike last Friday demanding the ministry raise their salaries, as the local currency has lost more than 90% of its value since the outbreak of the economic crisis in October 2019. The Lebanese pound, which had been officially pegged to the dollar at 1,500 pounds since 1990, is currently trading at around 107,000 against the greenback on the black market.

As the crisis continues unabated, the yearly state budget allocated to Ogero has dropped to about $4 million, which barely covers the fuel needed for the operation of internet relay stations, leading to sharp salary cuts, Ogero’s chairman Imad Kreidieh told The National last Friday.

The strike threatens to bring internet blackouts across the country. The two main mobile phone operators, Alfa and Touch, will also be affected as they use Ogero to route their data.

According to its website, Ogero is the executive arm of the Ministry of Telecommunication. Founded by the Lebanese state in 1972, the company is the infrastructure operator for all telecom networks in the country, including mobile operators and internet service providers, among others. 

Workers at Ogero denounced Corm’s threats, accusing him of trying to evade his responsibilities, Lebanon's official National News Agency reported.

The agency quoted the workers as saying that they retain “full confidence in the military leadership that has always backed the rights of both military men and civilians.”

The spat between the government and Ogero employees comes as Lebanon faces its worst economic crisis in decades. In February, the inflation rate reached 189.67%, data from the Tradings Economics website revealed, while poverty is affecting more than three quarters of the population of 6 million, according to the United Nations. 

On Thursday, caretaker Labor Minister Mustafa Bayram announced a 50% increase of the minimum wage in the private sector to 9 million Lebanese pounds per month — still less than $100 at black market rates. 

Public anger against the government is growing by the day, with regular protests across the country denouncing the failure of the ruling political elite to address the numerous crises. The country has been without a president since October 2022, when President Michel Aoun, a staunch ally of the Iran-backed Hezbollah movement, stepped down after the end of his six-year term, which saw deepening political divisions among rivals. Since then, parliament has failed more than 10 times to elect a president. Hezbollah, which has gained considerable influence in the country in the past years, is backing Suleiman Frangieh. But the majority of parliamentarians have refused to support Frangieh, an ally of Syria’s Assad family. 

A Qatari delegation is reportedly heading to Beirut next week in a bid to break the political stalemate. Sources told the local Nidaa al-Watan newspaper on Thursday that the delegation is scheduled to meet with Hezbollah officials to discuss a presidential candidate that meets Arab and international requirements. 

Last month, representatives of the United States, France, Saudi Arabia, Egypt and Qatar met in Paris to discuss a road map to help Lebanon overcome its political impasse. 

Qatar has traditionally played a mediating role among Lebanon’s bickering politicians. The Gulf country has also supported Lebanon financially, providing aid packages to the needy as well as the army.