Japanese yen strengthens amid slowing US inflation    Oil up on Thursday    Microsoft eyes relocation for China-based AI staff    Beyon Solutions acquires controlling stake in regional software provider Link Development    Asian stocks soar after milder US inflation data    Abu Dhabi's Lunate Capital launches Japanese ETF    K-Movement Culture Week: Decade of Korean cultural exchange in Egypt celebrated with dance, music, and art    Egypt considers unified Energy Ministry amid renewable energy push    Orascom Development Egypt reports 41.4% revenue increase in Q1 2024    President Al-Sisi departs for Manama to attend Arab Summit on Gaza war    Egypt stands firm, rejects Israeli proposal for Palestinian relocation    Seventh shipment of Pakistani aid arrives in Egypt for Gaza    US, EU split on strategy for Russia's frozen assets    Empower Her Art Forum 2024: Bridging creative minds at National Museum of Egyptian Civilization    Niger restricts Benin's cargo transport through togo amidst tensions    Egypt's museums open doors for free to celebrate International Museum Day    Egypt and AstraZeneca discuss cooperation in supporting skills of medical teams, vaccination programs    Madinaty Open Air Mall Welcomes Boom Room: Egypt's First Social Entertainment Hub    Egypt, Greece collaborate on healthcare development, medical tourism    Egyptian consortium nears completion of Tanzania's Julius Nyerere hydropower project    Sweilam highlights Egypt's water needs, cooperation efforts during Baghdad Conference    AstraZeneca injects $50m in Egypt over four years    Egypt, AstraZeneca sign liver cancer MoU    Swiss freeze on Russian assets dwindles to $6.36b in '23    Climate change risks 70% of global workforce – ILO    Prime Minister Madbouly reviews cooperation with South Sudan    Egypt retains top spot in CFA's MENA Research Challenge    Egyptian public, private sectors off on Apr 25 marking Sinai Liberation    Debt swaps could unlock $100b for climate action    Amal Al Ghad Magazine congratulates President Sisi on new office term    Egyptian, Japanese Judo communities celebrate new coach at Tokyo's Embassy in Cairo    Financial literacy becomes extremely important – EGX official    Euro area annual inflation up to 2.9% – Eurostat    BYD، Brazil's Sigma Lithium JV likely    UNESCO celebrates World Arabic Language Day    Motaz Azaiza mural in Manchester tribute to Palestinian journalists    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



MCIT to release International calling licenses in January
Published in Daily News Egypt on 12 - 12 - 2006

Etisalat Chairman: company has already reached preliminary agreement with government for one of two licenses to be offered
CAIRO: Two International Gateway Licenses will either be sold to current telecommunications operators or through an auction in January, Minister of Communication and Information Technology (MCIT) Tarek Kamel told reporters Tuesday on the sidelines of the Cairo Investment Forum.
Kamel declined to comment on how much MCIT has valued each license at. His statements are the latest, and most senior, among many made by MCIT and National Telecommunications Regulatory Authority (NTRA) officials throughout 2006 concerning the timing of liberalizing the international calling sector long monopolized by Telecom Egypt (TE).
On another front, Etisalat Egypt Chairman Mohamed Omran, also present at the conference, said his company has come to a preliminary agreement with MCIT on the acquisition of an international calling license. He added his company has already imported most of the equipment necessary to operate international calls and will be ready to make the service available with Etisalat s 011 network launch in February.
TE s international calling monopoly ended legally in Dec., 2005 and the NTRA has promised the release of the two international licenses as early as of Jan., 2006. Still, the offering was never made as critics charged the 80 percent government-owned company continued to enjoy official protection.
International calling has, in recent years, accounted for more than 25 percent of TE s annual revenues. The company collected LE 2.3 billion in international calling revenues, or 27 percent of total revenues of LE 8.5 billion in 2005. International calling revenues include incoming international calling fees, mobile international traffic via its 25 percent share in VFE and fixed international calling traffic via its network.
NTRA Vice President Sherif Genina says the NTRA considers TE s interests a factor in the timing of the expected offering, but it s not everything. He attributed the continued delays in offering to the authority s focus on ensuring market readiness and maximizing the value of the licenses to be offered.
To counter the effects of losing its monopoly on providing the service, TE has recently undertaken several measures including increasing its stake in VFE to 49 percent via a stock market buyout in October and offering discounts ranging from 6 to 12 percent on international bills from LE 3,000 to LE 6,000.
Vodafone Group has since increased its stake in VFE to 55 percent through a capital increase, bringing TE s share down to 45 percent. The agreement effectively ended Vodafone s pursuit of an international calling license and launched a strategic partnership to offer more diversified services between both companies.
Despite talk of government protectionism, EFG-Hermes Senior Analyst Wael Ziada says its unlikely TE will be significantly affected by the imminent liberalization of the service, considering the steps taken by the company over the past year and rapid market evolution. Already in 2006, TE expects lower international calling revenues due to the development of other communication mediums such VOIP, he adds.
I don t think international calling competition will hurt TE that much, Ziada says. There s going to be an impact, there s going to be a drop, but it s not what people are expecting. On the other hand broadband revenues are growing, so they have other avenues to make up for lost income.
Even though international calling licenses have yet to be released by the NTRA, and despite Omran s announcement of his company s purchase of the necessary operation equipment, sources close to NTRA say it is likely the authority will require new operators to lease TE facilities until at least the end of 2008 to further ease the impact on the national company.


Clic here to read the story from its source.