A decision by the Minister of Communications... to prevent wasting public money!


The Ministry of Communications issued the following statement:


Minister of Communications, Johnny Al-Qurm, issued a decision requiring Internet service providers (ISPs) to pay sums of money owed to them since July 2017.


The Crimean Minister asked the General Directorate of Investment and Maintenance to announce the value of the costs of collecting state rights since the date of Decree No. 956 entering into force on 7/1/2017 until today, and in continuation until the implementation of the provisions related to controlling networks that violate the law monopolizing the Internet market and placing them at the Ministry’s disposal to manage them and introduce competition. These provisions were included in Decree No. 9458 dated 6/24/2022, establishing the solution to the phenomenon of the illegal Internet market.


This decision comes based on the Crimean Minister’s concern for the interests of both the citizen and the state, and to prevent public waste, and with the aim of removing the monopoly of the Internet market by violators of the laws and regulations, and based on his responsibility towards the sector, and after the failure of companies, creators and owners of the violating networks to cooperate and proceed with the implementation of the aforementioned provisions. And their continued avoidance of applying the applicable laws and decrees and the contents of the decisions regarding the conditions for leasing them international E1s capacity, despite repeated meetings calling for cooperation with the Ministry’s units to pursue a solution, since the issuance of Decree No. 9458, which would preserve all partners in managing this sector, but under the authority of the state. And to stop this unregulated and illegal phenomenon that is harmful to the financial integrity of the state and the interest of the citizen.

The rationale for the decision included the Audit Bureau’s report No. 17/2021 dated 11/11/2021 and the consultation issued by the Legislation and Consultation Authority No. 181/2023 dated 3/23/2023, as well as the Audit Bureau’s opinion No. 3/2023 dated 4/25/2023 and confirming its content with the opinion. Issued under No. 2023/20 dated 9/12/2023.


According to the decision, costs are paid once and are calculated as follows:


1- The value of the assignment for each E1 rented by the company and the company has not proven its use and distribution in accordance with applicable laws, decrees, regulations and procedures = number of subscribers x 20,000 LBP. This is for the period extending from 7/1/2017 until 6/30/2022.

Number of subscribers x 85,000 LBP From 7/1/2022 until 8/31/2023.

Number of Subscribers The cost of the assignment shall not exceed 200,000,000 LBP for each E1 allocated to the company providing the service.

2- Based on the opinion of the Audit Bureau No. 3/2023 dated 4/25/2023, which stipulates the obligation to collect the fees due and resulting from controlling the violating networks, begin paying the monthly Bitstream service fee for each final subscriber on the seized interconnection and distribution networks placed at the Ministry’s disposal in accordance with According to Resolution No. 1/544 dated 10/9/2023, the Bitstream service establishment fee must be paid once for each final subscriber when activating the aforementioned service to connect it via the Ministry’s network.

The Crimean Minister asked the companies to fully comply with what was stated in Clauses 1 and 2, on pain of taking the necessary measures in accordance with the laws.