12 Jul Egypt: Telecom Egypt and Orange Egypt sign three agreements
Telecom Egypt and Orange Egypt have renewed the international telecom services agreement that the pair signed back in January 2015 for a further four years. In announcing the development, Telecom Egypt said that the new agreement will end in December 2022 and is expected to contribute EGP4 billion (USD223 million) to its top-line over the duration of the deal. Meanwhile, the two operators have also signed a new transmission services agreement, which is valid until December 2021; this agreement is expected to contribute EGP1.5 billion to Telecom Egypt’s revenues.
Rounding out a trio of freshly-inked deals, it was confirmed that Telecom Egypt and Orange Egypt had also put pen to paper on a binding letter of agreement for mobile termination rates (MTRs). It was noted that this agreement formalises the framework for interconnection between both operators and represented ‘a major step for Telecom Egypt towards finalising all mobile termination agreements’.
Ahmed El Beheiry, Telecom Egypt’s CEO and Managing Director, was cited as saying: ‘The signing of these agreements with Orange Egypt supports our long-term relationship with the company as a strategic partner. Our model of long-term agreements with the domestic MNOs in the field of transmission and international telecom services aims to secure our revenue stream from these segments, while providing the MNOs with competitive offers commercially and technically that meet their needs. The mobile termination agreement is also an important milestone, which provides visibility on mobile termination rates and improves our gross margin for this segment.’