Egypt Approves Tripple-Play Service

The Egyptian telecoms regulator, the National Telecom Regulatory Authority (NTRA), has given the go-ahead for two consortia to provide triple-play services to residential compounds in Cairo’s suburbs which contain between 50 and 5,000 housing units, Reuters reports. The announcement follows the NTRA’s revelation that it was making two geographically-restricted triple-play concessions available last October. As previously reported by CommsUpdate, in April 2010 two bids were received for the concessions, and commenting on the latest development, Amr Badawi, NTRA CEO, said: ‘The committee has finished its work, and we had two bids, and both bids were accepted.’ It is understood that of the two consortia, one is led by LINKdotNET Egypt, which was recently sold to mobile network operator Egyptian Company for Mobile Services (MobiNil), and includes affiliates of local telecoms group Orascom Telecom. The other licence-winning group is believed to include Vodafone Egypt.

Alongside the announcement that the triple-play concessions had been awarded the NTRA also announced that it had appealed against a court ruling which overturned a ruling it made in September 2008 lowering interconnection rates. Last month it was revealed that a Cairo court had reversed the NTRA’s ruling following an appeal by MobiNil. ‘We've appealed that, and our decision is still on... We believe that we have a just case and we will prevail at the end,’ Badawi said of the matter.

Orascom Sells Off ISP's

Egyptian telecoms group Orascom Telecom has announced the sale of its two local internet subsidiaries – LINKdotNET (Egypt) and Link Egypt – to mobile network operator Egyptian Company for Mobile Services (MobiNil) for USD130 million. According to Orascom, InTouch Communications, a wholly-owned Orascom subsidiary inked a share sale and purchase agreement with MobiNil, with the deal excluding the non-ISP part of Link Egypt's business, while the other non-connectivity business (LINK Development, LINKonLINE, Connect Ads, Arab Finance Brokerage Company and Arpu+) will also remain under the ownership of Orascom.

The announcement followed the revelation that last week MobiNil shareholders had agreed to the purchase, with the acquisition part of an agreement that settled the long-running legal dispute between Orascom and France Telecom, the two major shareholders in the cellco. Orascom had previously postponed the sale until the settlement of its dispute with the French company.

FT, Orascom Finally Agree On Mobinil

The long-running battle for control of Egyptian mobile network operator Egyptian Company for Mobile Services (MobiNil) looks close to being resolved after European telecoms giant France Telecom (FT) and Egyptian group Orascom Telecom announced that they had reached a tentative agreement.

According to Dow Jones Newswires, the proposed accord was announced by the two parties in conjunction with the Egyptian Ministry of Communications and Information Technology (MCIT), which had overseen negotiations. It is understood that under the terms of the deal MobiNil’s current corporate structure will remain unchanged, as will existing voting rights in the cellco, with a statement announcing the deal noting: ‘The two groups will continue their partnership on a renewed basis going forward, implementing a revised shareholder agreement but with no change to the existing ownership structure or their shareholders' voting rights ... This agreement will allow the two telecoms operators to contribute their respective know-how and added value to the successful and profitable development of MobiNil.’

Further, the proposals will also see the integration of local internet service provider LINKdotNET Egypt, at present a wholly-owned Orascom subsidiary, into MobiNil, while FT has also reportedly agreed to change its accounting methods to fully consolidate MobiNil. FT and Orascom claim that the agreement will include settlements for all existing disputes between the shareholders, and full details will be made public once the deal has been finalised, which is expected to be ‘within weeks’.

The revelation comes hot on the heels of the announcement earlier this week that an Egyptian court had upheld an appeal by Orascom which blocked a proposed buyout of MobiNil by FT; FT had offered EGP245 (USD44.4) per share for the stake it did not hold in the mobile operator. MobiNil is owned by MobiNil Telecom (51%) and Orascom Telecom (20%), with the remaining 29% publicly floated. MobiNil Telecom is itself owned by FT (71.2%) and Orascom (28.8%), but following an April 2009 ruling by the International Chamber of Commerce (ICC) Orascom was instructed to sell its stake in the holding company to the French outfit.

Ft and Orascom Plan to Resolve Dispute Over Mobinil

France Telecom and Orascom Telecom Holding have presented a joint plan to resolve their long running and acrimonious dispute over the ownership of Egyptian mobile network, Mobinil. The agreement, which has been signed today and will be finalized over the coming weeks, will effectively bring to an end all disputes in relation to their joint investment in Mobinil.

In a statement, FT said that the two groups will continue their partnership on a renewed basis going forward, implementing a revised shareholder agreement but with no change to the existing ownership structure or their shareholders' voting rights.

The agreement also includes the integration of LINKdotNET - the leading ISP in Egypt - into their holding company, ECMS, allowing the company, subject to the approval of its corporate bodies, to extend broadband and corporate communications services to its 26 million customers; and create value for its shareholders and its 3,500 employees. Dr. Tarek Kamel, the Minister of Communications and Information Technology welcomed this step as the merge between the mobile services and internet services.

Stephane Richard, CEO of France Telecom, said: "I am very satisfied that we have reached an agreement with an entrepreneur such as Naguib Sawiris. Our two groups will now be able to continue working together in order to further contribute to the development of telecommunications services and information technology in Egypt. This market is very important for France Telecom and we will continue to invest and contribute our know-how in the years to come. In addition, this will also reinforce our commitment to maintain a strong R&D and Orange Business Services presence in Egypt."

As a result of the amended shareholder agreement, France Telecom will change its accounting method and will fully consolidate ECMS (ECMS was consolidated through proportional integration in 2009 and before).

The amended shareholder agreement will avail Orascom Telecom Holding operational rights commensurate with its co-owner and strategic partner position, in addition to protection and liquidity rights. Going forward, Orascom Telecom Holding will consolidate its participation in ECMS through equity method.

The outlined agreement will include settlements for all the disputes between the shareholders, the details of which will be communicated once the comprehensive agreement has been finalized.

Mobinil Sets Deadline For LINKdotNET Acquisition

Egyptian Company for Mobile Services (MobiNil), Egypt’s largest mobile network operator by subscribers, has revealed that it has set a deadline by which it aims to complete the acquisition of broadband provider LINKdotNET (Egypt), Reuters is reporting.

MobiNil, which is currently at the centre of an ownership dispute between France Telecom and Egyptian telecoms group Orascom Telecom, has said that it aims to finalise the acquisition of LINKdotNET from Orascom within a month, with MobiNil chairman Alex Shalaby noting: ‘We have set an internal target, within the board, that we would like to see this completed and concluded within 30 days, within a month from the board meeting yesterday [9 March].’ The development follows reports in December 2009 that saw Orascom announce it had suspended sale talks until the MobiNil ownership dispute.  Earlier this week it was reported that an Egyptian court had delayed the next ruling on the matter until 27 March.

Orascom Plans Bid For Triple-Play Licence

Egypt's Orascom Telecom has said it will consider bidding for one of the two triple-play licences that the government recently revealed it would offer early next year, Reuters reports. Orascom's chief operating officer, Khaled Bichara, said of the company's plans: 'We believe we are really well positioned. They [the government] want the local players and international experience, and we believe we won't need to go out of the group to make the bid'. The bid document for the licence is expected to be published by mid-October, with bids due by 12 January 2010.

Orascom is thought to be considering bidding for the concession even if it completes the sale of its IT subsidiaries LINKdotNET and Link Egypt.

Mr. Bichara denied reports that Orascom had halted the sale process for the two companies, but did add that a sale would only be completed if the bids submitted were suitable, saying: 'If we don't get the right price we won't execute the sale'; a final decision on any offers submitted is expected to be made by the end of the year.

Orascom mulls ISP Business

Egypt's Orascom Telecom is considering merging its ISP LinkDotNet and mobile provider Mobinil. Arab Finance reported that broadband operator LinkdotNet is considering selling a majority stake to Mobinil, or alternatively merging with other companies operating in the internet sector. Alex Shalaby, Mobinil's chairman, noted that negotiations between the two operators had not reached a conclusion, and stressed that the mobile company was considering other acquisition possibilities. Mobinil's rivals Vodafone and Etisalat already own ISPs and work on integrated fixed and mobile services.