08 December 2011
Telecom Egypt is expecting a ruling from an arbitration panel in January 2011 that will result in an inflow of EGP 8.8 billion (USD 1.46 billion), a senior executive told Zawya.
Telecom Egypt has a case before the Cairo Regional Center for International Commercial Arbitration against Mobinil and Vodafone.
Telecom Egypt has not included this amount in its financial reporting for the third quarter of 2011, Hassan Helmy, Senior Vice President for Financial Affairs, told Zawya.
It will, however, be included as soon as Telecom Egypt receives a favorable ruling in this regard, Helmy said.
The EGP 8.8 billion represents disputed differences with Mobinil and Vodafone over interconnection fees pending since 1998. Telecom Egypt leases the switches and the connection circuits that enable mobile phone companies to provide services to their customers.
Helmy pointed out that the investment plan of Telecom Egypt will be announced in the Board of Directors' meeting to be held during the last week of December. He indicated that the most important features of this plan include an investment of at least EGP 3 billion in the development of networks and upgrade of the existing networks to run more efficiently and to provide high-speed internet services (broadband).
This would help Telecom Egypt to compete with the mobile phone companies that provide these services through USB devices.
The net profit of Telecom Egypt during the first nine months of 2011 amounted to EGP 2.346 billion; returns on investment in Vodafone Egypt, in which Telecom Egypt holds a 44.5% stake valued at EGP 676 million. The income of the high-speed internet during the first nine months of 2011 amounted to EGP 760 million, and the company's share of the subscribers of this service is 63%.
UPDATE:
In response to this story, Telecom Egypt said on December 11, 2011:
Telecom Egypt is expected to complete one of the legal proceedings against mobile companies in 2012, and it has not included this amount in its financial reporting for 2011.
The SVP & CFO also clarified that there should be a clear distinction between lawsuits filed before the Administrative Court and arbitration cases filed before Cairo Regional Center for International Commercial Arbitration (CRCICA). The former relates to the period from 2008 until present and the latter relates to the period from 1998 till 2008. With respect to the lawsuit filed before the Administrative Court, Telecom Egypt is not party to this case, however, a ruling on this case is expected to be issued during December 2011.
According to the investment plan, Telecom Egypt did not disclose any plans for 2012, until they are approved by the Board of Directors.
© Zawya 2011
Telecom Egypt is expecting a ruling from an arbitration panel in January 2011 that will result in an inflow of EGP 8.8 billion (USD 1.46 billion), a senior executive told Zawya.
Telecom Egypt has a case before the Cairo Regional Center for International Commercial Arbitration against Mobinil and Vodafone.
Telecom Egypt has not included this amount in its financial reporting for the third quarter of 2011, Hassan Helmy, Senior Vice President for Financial Affairs, told Zawya.
It will, however, be included as soon as Telecom Egypt receives a favorable ruling in this regard, Helmy said.
The EGP 8.8 billion represents disputed differences with Mobinil and Vodafone over interconnection fees pending since 1998. Telecom Egypt leases the switches and the connection circuits that enable mobile phone companies to provide services to their customers.
Helmy pointed out that the investment plan of Telecom Egypt will be announced in the Board of Directors' meeting to be held during the last week of December. He indicated that the most important features of this plan include an investment of at least EGP 3 billion in the development of networks and upgrade of the existing networks to run more efficiently and to provide high-speed internet services (broadband).
This would help Telecom Egypt to compete with the mobile phone companies that provide these services through USB devices.
The net profit of Telecom Egypt during the first nine months of 2011 amounted to EGP 2.346 billion; returns on investment in Vodafone Egypt, in which Telecom Egypt holds a 44.5% stake valued at EGP 676 million. The income of the high-speed internet during the first nine months of 2011 amounted to EGP 760 million, and the company's share of the subscribers of this service is 63%.
UPDATE:
In response to this story, Telecom Egypt said on December 11, 2011:
Telecom Egypt is expected to complete one of the legal proceedings against mobile companies in 2012, and it has not included this amount in its financial reporting for 2011.
The SVP & CFO also clarified that there should be a clear distinction between lawsuits filed before the Administrative Court and arbitration cases filed before Cairo Regional Center for International Commercial Arbitration (CRCICA). The former relates to the period from 2008 until present and the latter relates to the period from 1998 till 2008. With respect to the lawsuit filed before the Administrative Court, Telecom Egypt is not party to this case, however, a ruling on this case is expected to be issued during December 2011.
According to the investment plan, Telecom Egypt did not disclose any plans for 2012, until they are approved by the Board of Directors.
© Zawya 2011
