Orascom Telecom and Telecom Egypt have reached agreement in principle with Dubai based VTEL Holdings Ltd for the sale of Lacom. The two Egyptian companies each own 50% the second national operator (SNO), which was officially dissolved in November 2008.
The Regulatory Authority of Post and Telecommunications (ARPT) will perform an audit on Lacom before authorising its sale, paying particular attention to Lacom’s non-compliance with the obligations of its licence award. Penalties will be charged for the SNO’s inability to meet the requirement to provide national coverage with its network. The level of penalties charged is likely to be decisive in determining the sale price.
VTEL Holdings is already present in Algeria through three subsidiaries: the ISP Anwarnet, internet and SMS service provider Noornet and Watanserv, a telecoms infrastructure company.