Shortly after the Arab Submarine Cable Company had signed a contract for the roll-out, operation and lease of a submarine cable network and an infrastructure for international telecommunications, a consortium headed by Orascom Telecom signed another contract for the rollout, operation and lease of a submarine cable network and an infrastructure for international telecommunications. It will connect Asia and Europe, passing through the A.R.E.
On June 13, 2006 the National Telecom Regulatory Authority (NTRA) had opened the door for companies interested in applying for licenses for the rollout of submarine cable networks that are capable of competing technically and economically with the existing cable networks that pass through the A.R.E. and which abide by the specifications and regulations set by NTRA.
This license has been issued within the framework of NTRAís support for the implementation of the national initiatives, the enhancement of the internet industry, and the broadband data services. It aims to complement the countryís policies in the liberalization of international telecommunications, as well as setting Egypt internationally as an operator of the international telecommunications cables and a pivot for their passing through its regional wate, taking advantage of its unique geographical position.
Moreover, the agreement is especially important due to the added-value which Egyptís national economy will gain from the foreign investments it attracts to the ICT sector. This will inevitably augment the competition in the Egyptian market, leading to service cost reduction for internet users, the provision of secured capacities for data transmission. In addition, the exportation of services (resulting from the submarine cable rollout) will be increased, hence leading to the opening of new markets for the services and the availability of job opportunities and the development of local expertise.
HE Dr. Tarek Kamel, the Minister of Communications and Information Technology, attended the signing of the contract, and Dr. Amr Badawi, NTRAís Executive President signed for NTRA. Also, Dr. Nagy Anis, the Executive Director of Middle East & North Africa (MENA) Cable Networks signed the license.