CAIRO: The National Telecom Regulatory Authority (NRTA) is looking into offering an international gateway license to Egypt’s three mobile operators. This step will open the door for the operators to offer international call services independently, without intervention from Telecom Egypt.
Currently the three operators offer international roaming services through Telecom Egypt. For a subscriber to make a call worldwide, an order goes through the mobile operator, which passes it to Telecom Egypt who then signal the international gateways of specified countries. Telecom Egypt receives an undisclosed percentage of revenues from mobile international call services.
“[Technically speaking], Telecom Egypt is the only entity that offers international call services in the country, said Ali Gamal El-Din Salama, vice chairman of commercial and financial affairs at Telecom Egypt. “Basically, what the NTRA is trying to achieve is liberalization of the country’s telecommunications sector and opening it up to more competition.
Competition, particularly from NTRA’s perspective, entails offering better quality services at lesser prices. This is the essence of the NTRA, even if it means that Telecom Egypt loses its monopoly on the international gateway.
“No doubt that competition in any sector leads to a reduction in prices, stated Wael Ziada, senior telecom analyst at EFG-Hermes. “However, a decrease in prices in the case of international call services will depend on the price of the license. If it’s quite expensive and [stipulates] a revenue share agreement, then don’t expect reduction on tariffs to be substantial.
Ziada expected Vodafone Egypt to continue to provide international call services through Telecom Egypt, as the latter provided it with an exclusive international gateway agreement.
Towards the end of November 2006, Telecom Egypt and Vodafone entered into a strategic partnership to jointly develop a range of telecommunication products and services. These include providing Vodafone Egypt with exclusive international gateway rates.
“Currently we have a relationship with Telecom Egypt regarding international call licenses. They provide us with international call services at competitive rates and accepted quality, explained Omar El-Sheikh, corporate affairs director at Vodafone Egypt. “If this [bargain] – competitive rates and accepted quality – continues, we will go on with offering our international call services through Telecom Egypt.
All three mobile operators said they would closely read terms and conditions of any newly proposed offers to decide whether or not to venture into a new international gateway agreement.
