Why cellular operators do now not need Telecom Egypt playing their recreation

Telecom Egypt (TE) has managed the telecommunications infrastructure and makes huge revenues by leasing its traces—more than other business enterprises in the Egyptian telecommunications marketplace. But, despite its apparent success, the organization has sought a seat at the cell operator’s desk for years. This has raised questions: why wouldn’t it attempt to input a new area and compete with three mounted cell operators—Vodafone, Orange, and Etisalat—who already have a sturdy foothold inside the market?

Consistent with the monetary statements of TE, the enterprise’s income is predicted at EGP 4bn. The maximum payment came from renting out infrastructure to the three primary cellular operators and their affiliated internet businesses. TE Records and Exceed additionally contributed to a portion of TE’s earnings. In the meantime, the profits of Vodafone, Orange, and Etisalat mixed attained EGP 4bn, as Vodafone registered EGP 3bn, Etisalat EGP 1bn, and Orange misplaced EGP 40m. TE owns forty five% of Vodafone Egypt, meaning the employer receives EGP 1.3bn from Vodafone Egypt’s profits. Including this to TEs mentioned income, its earnings upward thrust to EGP 5.3bn. Then again, Vodafone loses that parent of its earning, dropping its earnings to EGP 1.7bn. Without entering the cell market, TE is already the Maximum profitable enterprise inside the region, with a 60% marketplace income.

Monopoly over infrastructure frightens cellular operators. TE, the only infrastructure provider, permits it to reduce the internet from subscribers to different internet companies, as had occurred when the infrastructure’s copper cables were changed with fiber. This compelled many customers to terminate their contracts with other agencies and transfer to TE Data. Even scarier, TE has no longer signed a condominium settlement for its infrastructure with Etisalat Egypt because the latter entered the Egyptian market in 2007. TE’s agreement with Orange has been in court until now, and comparable troubles with Vodafone were handiest settled months ago.

Cell operators are complaining about the absence of fair regulating mechanisms within the market, given that one business enterprise owns the infrastructure in the middle of its business. In line with a source in one of the cellular companies, who requested anonymity, TE’s role within the ADSL internet marketplace frightens cell operators as to what might occur have to TE acquire a 4G license.