(ArabFinance)– Telecom Egypt (ETEL) announces signing an agreement with Orange Data (OREG) to provide infrastructure and transmission services for three years.
The agreement formalizes existing relationships with Orange Data in regards to new services offered through Telecom Egypt’s modernized network, which is based on fiber technology instead of the legacy services offered on the historical copper network.
The agreement was signed by Telecom Egypt’s Managing Director & CEO Ahmed El Beheiry and Mr. Jean Marc Harion, Orange Egypt’s CEO.
In regards, to the financial impact the company is not expecting an immediate impact from the agreement as the new services are replacing old services provided on the copper network. However, it is expected that the impact will be visible over the medium term given that the pricing of the new services is capacity based.
The agreement provides Telecom Egypt with a mechanism that enables it to better monetize its current investments in the fiber network.
The new pricing mechanism introduced allows the ISPs in the market to upgrade to bitstream services instead of the old local loop unbundling services and at the same time provide Telecom Egypt with a charging tool to capitalize on the expected growth in the data market.
The pricing of the services is based on the capacity utilized including a minimum commitment, similar to the other transmission agreements Telecom Egypt has signed with the local operators.
Ahmed El Beheiry, Telecom Egypt’s Managing Director and Chief Executive Officer, commented: “The agreement is important to Telecom Egypt as it allows it to grow the strategic partnership with Orange Egypt and the volume of business between the two companies.
It also boosts Telecom Egypt’s leadership in the infrastructure services and allows it monetize the huge investments it has undertaken over the last few years to modernize its network.”