CAIRO: Egypt's landline monopoly Telecom Egypt is looking to increase its footprint in the Internet through its new cable that will be launched in the near future, the company said. It is seeking to enter an already competitive market, which has already seen the landline industry curtail in recent years. According to Telecom Egypt, the Internet sector is the future. They believe that in order to increase their profits – which increased by three percent in the first quarter – they must provide DSL connections in the country. A statement from Telecom Egypt sent to Bikya Masr on Sunday said they are “extremely hopeful of the future and are ready to move into new areas that we have not previously endeavored because if we want to compete in Egypt there must be action taken.” The company, which is owned by the Egyptian government, believes that profits will continue to rise slightly over the next three quarters, “but will not be as substantial as we would like, which made our decision to move into the Internet and mobile connections so much easier.” By mid-year, however, with a new cable expected to be operational between Egypt and France, the company expects to see business revenue of LE 700 million and 800 million in 2010. “And then in 2011, as we get our concrete plans of action taken care of, we will be moving in the right direction,” the company's statement read. The announcement comes after TE pushed for a ban on 3G mobile phones accessing the popular Internet phone device Skype. The ban of Skype has left a number of Egyptians upset and angered that they can no longer use the free Skype-to-Skype calling service from their mobiles. A number of users have voiced concerns that it is an attempt by TE to force Internet users to return to TE when making international calls, which they said is too expensive and the connections are often poor. “We are seeing TE take on a new role in curtailing our rights to use services that are free and easy because they are afraid they won't get the customers, but we already have stopped using landlines, so why do they think this will make a difference,” said Amal Abdel Khalak, a 28-year-old analyst at a leading Egyptian securities firm. She believes that if TE can diversify as it says, the future will be better for all Egyptians. “But, they have to realize that they cannot alienate customers through defensive actions like this,” she said. TE also hopes to become the country's fourth mobile operator, although the company did not elaborate on this development. BM
