Telecom Egypt (TE) announces the purchase of the remaining 4.95% of shares in its broadband subsidiary, TE Data, from three local Egyptian banks. This takes TE's ownership in TE Data to 100% with immediate effect.
Commenting on the move, Mr. Tarek Tantawy, Chief Executive Officer & Managing Director of Telecom Egypt, said: "The Egyptian telecommunications market is in an immensely dynamic phase and broadband sits at the heart of this revolution. Demand for broadband data access and services is projected to grow significantly over the next three to five years and TE's vision is to lead from the front."
"TE Data has consistently been one of our best performing subsidiaries, delivering revenue growth of 27% CAGR over the last five years. We expect the importance of this segment to grow further going forward and, as such, have taken advantage of the opportunity to establish full ownership of the business," he added.
At the end of September 2009, TE Data had 572 thousand ADSL subscribers, an increase of 68% in comparison to the same period in 2008; placing TE Data's market share at 61%. TE's internet and data revenues during nine months 2009 increased by 18% on 2008.
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About Telecom Egypt:
Telecom Egypt (TE), Egypt's incumbent telecommunications operator, started its operations in 1854 with the first telegraph line in Egypt. Then it was corporatized in 1998 to replace the former Arab Republic of Egypt National Telecommunication Organization (ARENTO). The Company is the largest provider of fixed-line services in the Middle East and Africa with 9.6 million subscribers as at 30 September 2009.
TE provides retail telecommunication services including access, local, long distance and international voice, Internet and data, and other services. The company also provides wholesale services including bandwidth capacity leasing to ISPs, and national and international interconnection services. Telecom Egypt's services also include the provision of narrowband and broadband internet access through its subsidiary TE Data. TE Data has active operations in Egypt and Jordan.
TE currently participates in the mobile segment in Egypt by providing mobile interconnectivity through its current, increased 44.95% holding in Vodafone Egypt, one of the three existing Egyptian mobile operators. TE's shares and GDRs (Ticker: ETEL.CA; TEEG.LN) are traded on the Egyptian Stock Exchange and the London Stock Exchange.
About TE Data:
TE Data is Egypt's largest Internet and data transfer service provider. TE Data S.A.E. was established in late 2001 by Telecom Egypt, to act as its data communications and Internet subsidiary.
TE Data was awarded a Class A license, from Egypt's National Telecommunications Regulatory Authority (NTRA), which allows TE Data to build its own national network, and operate its international data gateway.
TE Data stands ready to design, test, deploy, and manage IP- based network solutions. TE Data takes pride in serving both the home-based customers and various business sectors with the same vigor and dedication.
TE Data's market share has reached 61% and own 70% of the Internet capacity in Egypt, which is the largest international Internet capacity in Egypt and the Middle East.
Furthermore, established TE Data Jordan licensed by the Telecommunication Regulatory Commission in Jordan on July 2004, which, for the last five years, has succeeded in providing various and outstanding services to its customers in Jordan.
For further information, please contact:
Ahmed Fathallah
Director of Investment & IR
Tel: +202 3131 6699
Fax: +202 3131 6115
Mohamed Kamal
Internal Reporting & IR Manager
Tel: +202 3131 5219
Fax: +202 3131 6115
Supriya Mathur
Consultant
Capital MSL
81 Whitfield Street
London W1T 4HG
T: +44 (0) 20 7307 5347
F: +44 (0) 20 7307 5331
© Press Release 2010
