Lebanon has recently licensed Elon Musk’s Starlink to provide satellite internet services, a significant step towards improving the country’s telecommunications infrastructure during an ongoing economic crisis. The World Bank characterized Lebanon as one of three countries worldwide currently enduring the worst economic collapse since the 1850s. This crisis of neglect is exacerbated by extraordinary levels of corruption and deep desire for reforms.
Lebanon’s President Joseph Aoun and Prime Minister Nawaf Salam have already reiterated their commitment to meeting these challenges. They seek to institute long-overdue governance reforms and fight the corruption that has infested the country for decades. As they start on this journey, the introduction of Starlink’s services provides a glimmer of hope amidst the dire circumstances.
Since the ongoing economic meltdown started in late 2019, Lebanon has gone through unprecedented energy shortages. Unfortunately, for the past several decades, the country has suffered regular and extended periods of blackouts. The country’s electricity sector is not just inefficient but fiscally irresponsible, wasting more than $1 billion per year. The 14-month Israel-Hezbollah war hasn’t helped, placing further strain on the already-damaged infrastructure. It’s decimated power infrastructure and other key public assets.
Since the cessation of the civil war in 1990, Lebanon has lost an overwhelming $40 billion from its public cash box due to corruption. This sudden drop has deepened the economic woes experienced by its residents. The announcement of Starlink’s licensing comes at a crucial time when Lebanon needs innovative solutions to revive its telecommunications sector.
Lebanese Minister of Information Paul Morcos announced on October 17 that Starlink had been given permission to operate in Lebanon. He explained that remote broadband services will be deployed across the country, using low-orbiting satellites controlled by SpaceX. This initiative is expected to enhance internet accessibility significantly, particularly in remote areas that have historically struggled with connectivity issues.
In a follow-up discussion, President Aoun and Mr Musk discussed opportunities for collaboration within Lebanon’s telecommunications and internet sectors. This collaboration marks a key opportunity for Lebanon as it continues to invest in innovative technologies to support its recovery and rebuilding.
The World Bank has committed a $250 million loan to help cover Lebanon’s electricity needs. This funding will go a long way toward alleviating large electricity shortcomings and increasing inefficiencies in the sector. The establishment of a regulatory authority for the electricity sector—planned over two decades ago—remains an unfulfilled promise, highlighting the urgent need for structural improvements within Lebanon’s governance.
