Telecom Egypt close to agreeing fixed to mobile interconnection rates

15 Sep 2009

Egyptian fixed line incumbent Telecom Egypt (TE) is close to finalising a deal with Vodafone Egypt and Egyptian Company for Mobile Services (MobiNil) related to the long-running dispute over interconnection fees, Reuters reports. It is understood that TE will agree to charge both cellcos EGP0.07 (USD0.01) per minute for calls from land lines to mobiles, while both Vodafone and MobiNil will pay EGP0.115 per minute for calls from mobiles to land lines. Commenting on the possible resolution, Tarek Tantawy, TE’s chief executive, said: ‘Implementation of the new agreement should take place within weeks.’

According to TeleGeography’s GlobalComms database, in mid-2008 TE filed a complaint with the Dispute Resolution Board of Egypt’s National Telecommunications Regulatory Authority (NTRA) aimed at altering the rates for interconnection with mobile operators. The NTRA subsequently issued a ruling on the dispute on 3 September 2008, changing the interconnect prices between the fixed and mobile networks, but MobiNil swiftly objected to the decision and filed a lawsuit on 1 November 2008 against the NTRA before the Administrative Court at the State Council, claiming that there was ‘no legal or contractual basis’ for the decision.