The Ministry of Telecom (MoT) unveiled new reduced telecom prices and upgraded Internet speeds. The new schemes will become applicable starting June 1.

Postpaid subscribers will benefit from additional 60 minutes of talk to compensate for the $15 subscription monthly fee.

Prepaid users will benefit from a 30 percent drop in the price per minute from 36 cents to 25 cents, and a drop in the price of the SMS from nine to five cents.

3G users will benefit from a 500 MB plan for $10, versus the current 150 MB for the same price. Users of the $19 plan who currently have access to 750 MB will double their capacity and benefit from 1.5 GB. Those using the $29 plan to get 1.5 GB will instead get 5GB.

DSL users will benefit from a new two mbps unlimited plan for $50. The four mbps package with 25 GB capacity limit which cost $76, was increased to 50 GB and will the cost will be decreased to $33.

E1 leased lines cost will also drop from $300 to $166. According to Boutros Harb, Minister of Telecom, the new pricing rate will allow international leased lines to compete with regional countries and will then be able to attract foreign companies to establish their regional presence in the local market.

Harb said that specialized departments at the ministry prepared studies and comparative financial reports showing the related expected results to the price decrease.

Studies were based on a one year simulation. The study showed that monthly revenues will initially drop from $4.26 million to $4.2 million ($66,000).

Income provided by investments in the fixed network will grow by $15 million on yearly basis following the drop in the monthly subscription and establishment fees. This increase is due to the boost of the number of subscribers of the landline network by 100,000 subscribers yearly.

The decree may lead to some losses to the Treasury during the first few months following its application, but will be compensated by double the amount with additional direct and indirect income, Harb said.