Last checked at 23 Jan 2018 07:00
Telecom Egypt signs Settlement with Etisalat Misr
The settlement marks the end of all disputes with all mobile operators
Tuesday, 23 January 2018
Telecom Egypt (Ticker: ETEL.CA; TEEG.LN) announces that it has reached a final settlement agreement with Etisalat Misr in regards to a dispute on international calls services. The settlement covers amounts relating from the start of rendering services to Etisalat Misr and until 13 June 2017.
According to the settlement, Telecom Egypt will pay USD 48mn to Etisalat Misr to mitigate an exposure of more than USD 100mn. The settlement agreement was signed yesterday by Telecom Egypt and marks the end of all disputes with all mobile operators in Egypt.
In terms of financial impact on the P&L, Telecom Egypt had already formed provisions covering the total amount in Q4 2017.
Ahmed El Beheiry, te's MD and Chief Executive Officer, commented:
"We are pleased to reach a final settlement with Etisalat Misr as we embark on a new era, where we are mitigating uncertainty and risk, while cleaning our balance sheet to ensure smooth financial performance in the future. The new phase also emphasizes on the importance of partnership as the key to secure ongoing cooperation with all mobile operators."
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About Telecom Egypt
Telecom Egypt (te), Egypt's incumbent telecom operator, started its operations in 1854 with the first telegraph line in Egypt. te was corporatized in 1998 to replace the former Arab Republic of Egypt National Telecommunication Organization (ARENTO). 2017 marks a new milestone for the company as it transforms into a fully integrated telecom operator through the long awaited launch of mobile services on 19 September 2017.
te provides consumer and enterprise telecom services including fixed plus mobile voice and data services and has been able to gain 1m customers in its first month of mobile launch. te also maintains its market leadership position in the fixed broadband market with a market share of 78%. The company also provides wholesale services including bandwidth capacity leasing to ISPs, and national and international interconnection services.
Aside from its own mobile operations, the company owns a 45% stake in Vodafone Egypt, the leading and most profitable mobile operator in Egypt.
te's shares and GDRs (Ticker: ETEL.CA; TEEG.LN) are traded on The Egyptian Exchange and the London Stock Exchange.
For more information, contact:
The investor relations team
Email: investor.relations@te.eg