Telecom Egypt and Orange Egypt announced the signing of a renewal of the international telecom services agreement, which was signed in January 2015 for a period of four years. The new agreement will end in December 2022 and is expected to contribute cEGP 4bn to Telecom Egypt's top-line over the tenure of the agreement. It will also enable Orange Egypt to continue providing the best offers and international services to its customers.
The two companies also signed a new transmission services agreement for 3.5 years ending December 2021. The agreement is expected to contribute cEGP1.5bn to Telecom Egypt's revenue and support Orange Egypt in enhancing the services offered to its customers.
Finally, the two companies signed a binding letter of agreement for mobile termination rates. The agreement formalizes the framework for interconnection between both operators and is a major step for Telecom Egypt towards finalizing all mobile termination agreements.
Ahmed El Beheiry, Telecom Egypt's Managing Director and Chief Executive Officer, commented, "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."
Commenting on the announcement, Yasser Shaker, Orange Egypt Chief Executive Officer, said, "We are pleased to have reached a long-term agreement with Telecom Egypt regarding transmission, international telecom, and mobile termination services, which we expect to positively affect the company's KPIs. The three agreements will support Orange in its leadership of providing telecom services of high quality and speed to its customers in the Egyptian market."
"This comes in line with the company's strategy especially after recently launching the 4G network, which we were the first to introduce. Orange is proud to have solid relationships with all companies and entities in the telecom sector, and Telecom Egypt in particular as it is the main provider of infrastructure services," he added.