Fraud and collections in the Lebanese GSM sector : the case of Alfa Telecommunications

Abstract

This thesis studies the implications of introducing the public sector domination in what it used to be a private sector business. It is related to the mobile technology in Lebanon which shifted from a former prosperous management to an operator on the Lebanese government's payroll. Comparing the previous Cellis era to the new Alfa epoch revealed that the former days were much better in terms of management. With all the outside interference and the relation to Syrian officials, the Lebanese GSM sector was in state of outmost glory and technological advancements compared to its worldwide adjacents. In each company, losses are inevitable ranging from a small lost stapler to a large multimillion dollar investment. Alfa's case went beyond those staplers and erasers to become a matter of millions of dollars lost each year from the fraudulent customers. An organized bad debt management is imperative for the well being of this sector, benefiting the revenues and sustaining the reputation of both Alfa and MTC touch.This work was performed for the main purpose of resolving the issue of collections because defrauders are constantly finding ways to steal talk-time from both networks at the time no security measures are being adopted to prevent such actions. Following those facts, experts in Telecom associated the management's inflexibility in defensive measures towards the perpetrators as being equivalent in crime. It is considered criminal not to take definite measures to stop them as they are criminals in taking advantage from both networks to benefit the most at near no cost terms. Adding to that is a suspicion of some sort of money laundry actions in the Lebanese GSM sector. This criminal fact is not directly related to Alfa; rather it is associated to the wholesalers who are Alfa's and MTC's main customers for block sales of lines and services. Just in case both operators' managements are aware of money laundry schemes and they are silent for the sake of sales, one would deduce that they are both accomplices in crime. If those doubts are correct, we can ask ourselves the following question: Can a major business in Lebanon exist and operates without being polluted with money laundering?