CAIRO: Orascom Telecom (OT) has announced that it will feverishly compete for Egypt’s second fixed line phone license, which will be put up for tender early next year to start operating early 2009.
According to press reports, Etisalat Egypt is also interested in bidding for the license.
“Orascom Telecom plans to participate in the tender alone, without any partners. We are sure that we will be up against fierce competition, but we are ready for it, an OT source said.
This decision is expected to spur competition in the fixed line domain, ending Telecom Egypt’s current monopoly over the market and encouraging the company to improve its services.
“The tender is a turning point in the telecommunications industry and will lead to an open market that will benefit Telecom Egypt, as well as the end-consumer, OT Chairman Naguib Sawiris told state-owned Al-Ahram newspaper in an interview on Sunday.
Telecom Egypt received the news with an open heart, saying they encourage the competition and hope the tender will be granted to the company that most deserves it.
“We have been working on improving our services for the past few years, of course the introduction of a second fixed line will encourage us to increase our efforts, but we are confident in our abilities, Moataz Mahmoud, Telecom Egypt’s media relations executive, told Daily News Egypt.
In the past few years, Telecom Egypt has introduced online billing services, enhanced its voice reception quality and expedited its phone installation services.
OT, however, plans to introduce much more to the landline domain. “It is not confirmed yet, but we could introduce ‘broadband’ services [if we win the tender] to the second fixed line, the source at OT said.
The specifications of the second fixed line have not been decided yet, but if the “broadband service is introduced, it is expected to increase the price of the bid.
Meanwhile, OT witnessed the signing of an agreement between the National Telecommunications Regulatory Authority (NTRA) and Mena Marine Cables consortium ¬- a joint venture sponsored by OT, in which it has a 94 percent share – to install a new international telecom marine cable network. The total investments of the project amount to $233.8 million. The agreement stipulates that the consortium establish, operate and maintain the infrastructure of an international marine cable and fiber optics network in Egypt, to connect the Middle East and Asia with Europe.
OT’s investments, as well as its interest in the fixed line license, have increased its share’s worth on the Case30 index, gaining 0.7 percent on Sunday to reach LE 73.5. Telecom Egypt shares also increased by 2.4 percent to reach LE 17.41.
“The increase in share prices is normal, we are entering an important phase and everyone is interested in the telecommunications sector, it is a wise decision to invest in this sector now, OT source said.
Etisalat Egypt were unavailable for comment, but if they decide to participate in the tender “the competition will take a different turn, Mahmoud said.
