There are three things that most Lebanese know about their mobile phones: the service is expensive; it is not up to modern standards; and, not unimportant in such a volatile country, calls can be eavesdropped on easily and traced for security reasons.

The authorities actively pursue call tracing, and have recently inaugurated a telecommunications surveillance centre. But the remedy for the first two issues – reform and/or privatisation – is proving much more complicated.

In theory Lebanese governments have been committed to privatisation for years, but in practice little has happened. And progress could be further slowed by negotiations to form a new government.

Ziad Hayek, head of the administration’s higher council for privatisation, bemoans the stasis. “Very few people here in Lebanon actually know what they are talking about when they discuss privatisation,” he says. “They are all political slogans – very unfortunate political slogans.”

Debate on privatisation is fed by deep distrust among the factions and is exacerbated, some say, by naked self-interest. At stake are billions of dollars and control over such strategic assets as the mobile and fixed-line telecoms operators, the electricity sector, civil aviation and the Casino du Liban. The casino and Middle East Airlines, the national airline, are owned by the central bank.

An initial public offering of part of MEA has been postponed several times, most recently in 2008 because of the global financial crisis.

The two mobile networks, MTC Touch and Alfa, are operated for the government by Zain of Kuwait and Orascom of Egypt respectively. They contribute $1.1bn to the treasury annually, but removing value added tax and allowing for operator expenses and other costs, that comes down to some $750m.

Before the financial crisis, ministers were hoping to net $7bn from the sale of the two mobile network licences.

The authorities also hope eventually to privatise Liban Telecom. This group, which has yet to be established, will combine Ogero, the government-owned fixed-line company, parts of the ministry of telecommunications and a new mobile licence.

The impression has been created that the western-backed March 14 majority in parliament is fervently in favour, and that the opposition March 8 bloc, which includes the Shia Hizbollah movement, is more reluctant. In truth, the dividing line runs through both political camps.

March 14 won a comfortable victory in elections in June and Saad Hariri, its leader, is still attempting to form a coalition of national unity in which all opposition parties would be represented.

Mr Hariri has said the economy will be a priority for him. Lebanon is also committed to reform and restructuring of its public sector under the terms of the three Paris conferences at which it received financial support from the international community.

But the reality is more complex. Walid Jumblatt, the Druze leader and formerly a prominent March 14 member, has spoken out against privatisation. And the opposition says it is not ideologically opposed.

“We would look at every case at its own merits,” says Yassin Jaber, an MP aligned with the Amal movement, which is an ally of Hizbollah. “We are neither opposed nor rushing to sell the family silver tomorrow.”

Nizar Hamzeh, an academic and author on Hizbollah, sees the opposition’s statements in terms of “a negotiating position to be used in a trade-off”.

He does not discern any ideological opposition on the part of Hizbollah. “They will not come out with a final position. Instead they will want something in return,” he says.

That something in return for Hizbollah could range from permission to retain its arms and recognition of its role as the national resistance against Israel, to more general interests such as cabinet positions and distribution of funds.

Mr Hayek says: “I don’t see Prime Minister Hariri leading a government that would not implement economic reforms.”

But those opposed to privatisation, including the trade unions, argue that efficiencies can be achieved while maintaining government ownership, especially of utilities and essential services. “It should be well managed, along the lines of the private sector,” says Ghassan Ghosn, head of the General Confederation of Workers.

Mr Ghosn cites the example of Middle East Airlines, which was restructured and in 2002 became an independent company owned by the government. It is now the 18th most profitable airline in the world.

Critics, though, say this comes at a price to Lebanon’s consumers and economy in the form of expensive tickets.