Egypt awards triple-play licences to LinkOne and TeleTech consortia

Friday, July 16th, 2010 
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NTRA Awarded LinkOne and TeleTech Consortia Licenses To Construct & Operate Access Networks In Closed Compounds

CAIRO — The Board of Directors of the National Telecom Regulatory Authority (NTRA), chaired by Dr. Tarek Kamel, Minister of Communications and Information Technology, decided to award LinkOne and TeleTech consortia two licenses for the construction and operation of Access Telecommunications Networks in Closed Compounds.

Dr. Amr Badawi, NTRA’s Executive President, stated that the two consortia were the best bidders with regard to the technical and financial capabilities as per the beauty contest scheme that had been previously announced by the NTRA (The Licensor). The first consortium (i.e. LinkOne) comprised of Link Egypt, LINKdotNET, and Weather Capital Investment Company. The second consortium comprised of TeleTech, Vodafone Int., Aviation Information Technology (AVIT), and Giza Systems Company.

Dr Amr Badawi said that the licenses granted to such companies would enable them to construct and operate fiber-based communications networks and provide services in closed compounds throughout A.R.E… The total number of the units in a Closed Compound should be no less than fifty (50) units and no more than five thousand (10000) units and they should be established on a total area of at least four (4) Feddans. The Licensee is prohibited to install access networks in closed compounds of units exceeding the currently allowed maximum number. As for the closed compounds whose number of units is less than 50 units, their case will be decided at the discretion of the owner of each compound.

NTRA’s Executive President pointed out that the winning consortia would enable Telecom Egypt, in the first phase, to use the network to provide fixed telephony services at no costs or without bearing additional burdens. Telecom Egypt is entitled to bill its customers and charge them for basic telecom services – if it intends. In addition, the Licensees are entitled to provide the value-added wireless and wired services (such as Wifi services) by using the allowed frequencies in the closed compound.

The Licensees will launch the latest telecom technologies to provide all the modern and intelligent services and Triple Play service in addition to any other services. The State’s share in revenues amounts to 8% of the Licensees’ total annual revenues and the license term is 15 years.