In contrast to the price hikes being applied to most goods in Syria, the Syrian Telecommunications Establishment (STE) reduced subscription costs for Internet broadband service by some 40 percent on February 28.

This reduction, which applies to unlimited data transfer schemes, is the second in two years. In May 2010, subscription prices were decreased by about one third. Conversely, the number of Syrian broadband Internet subscribers rose some 77 percent in the last year, according to the STE, which operates Syria’s landline phone network and acts as the regulator of the telecommunications sector, offering broadband Internet through Tarasul, its service provider. The STE had 123,437 subscribers to its ADSL service on February 21, 2012, up from 69,817 at the end of 2010, state-owned daily Tishreen reported on March 7.

The vast majority of Internet users in Syria continue to subscribe to dial-up service, although their total number actually declined, the daily reported. 3-G services, on the other hand, are only provided by two private mobile services companies: Syriatel and MTN.

However, the total number of subscribers is not the only index of shifts in Internet services, a telecommunications engineer with STE who requested anonymity told Syria Today. According to him, quality of service and coverage capacity are also important indicators. “Service is temporarily suspended in some places as a result of sabotage that hit some switches,” he said, pointing out that network development programs are still underway.

He confirmed that the recent EU sanctions have not affected the telecommunications sector, which has been hampered by export sanctions imposed by the US since 2004, as there are no joint EU projects in the sector. Rather, he explained, “most of our contracts are with Chinese and Korean companies.” Telecommunications sector contributions to the GDP reached 5 percent in 2011 with its revenues comprising 7 percent of the total public treasury.

However, in spite of a sharp increase in the use of the Internet and other communication tools in the last few years, Syria continues to trail other countries in the region, according to data published by the UN Conference on Trade and Development (UNCTAD). This is particularly due to strict restrictions on access to information, including the blocking of many Internet sites, which continue to represent an obstacle for the industry, according to UNCTAD data. Only in February of last year did Syria stop blocking YouTube, Facebook, and Twitter, in a move described by private daily Al-Watan on February 14, 2011 “as a proof that the government  was confident in its performance and did not fear the impact of these new media on the political situation in the country”.

According to the telecommunications engineer, “Syria remains a market with great potential for expansion. It required much market liberalisation to achieve this potential a year ago; now, however, it requires more market stability.”