REG - Telecom Egypt S.A.E - TE & VFE Signs New Service Agreements

Telecom Egypt Co SAEAnnouncement

11/11/2024 12:00

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RNS Number : 7383L  Telecom Egypt S.A.E  11 November 2024

Telecom Egypt and Vodafone Egypt Strengthen Strategic Partnership with New Service Agreements

11 November 2024:  Building on their long-standing strategic partnership,
Telecom Egypt and Vodafone Egypt have signed several landmark service
agreements for infrastructure services. These agreements aim to develop
Vodafone Egypt's networks and support its preparations for the rollout of 5G
services. The combined total value of these commercial agreements amounts to
around EGP 30 billion, to be disbursed over the duration of the agreements,
which have varying maturities up to 2034.

These agreements align with Telecom Egypt's strategic plan to monetize its
advanced network, which serves as the foundation for delivering 5G services.
This further solidifies the company's role as the nation's leading
telecommunications infrastructure developer and reinforces its position as the
top provider of infrastructure, connectivity, and wholesale services to all
the other operators in the market, in line with Egypt's Vision 2030 for
digital transformation. The agreements enable Vodafone Egypt, Telecom Egypt's
largest operator client and the owner of the largest mobile market share in
Egypt, to leverage Telecom Egypt's integrated infrastructure and fiber optic
network to deliver exceptional services to its customers. Additionally, they
also allow Vodafone Egypt to leverage its extensive global expertise in
deploying 5G technologies, which it has implemented in over 34 countries
worldwide.

The partnership includes extending Telecom Egypt's transmission services
agreement with Vodafone Egypt until 2031, securing Vodafone Egypt's current
and future expansion. It also includes a four-year agreement for fiber
connectivity to Vodafone Egypt's mobile sites. In addition, several other
agreements have been signed for virtual fixed voice and internet services,
enabling Vodafone Egypt to expand its integrated portfolio of communications
services in the Egyptian market and benefit from a range of distinctive
value-added services and competitive business offerings.

The agreements were signed by Mohamed Nasr, Managing Director and CEO of
Telecom Egypt, and Mohamed Abdallah, Managing Director and CEO of Vodafone
Egypt, in the presence of H.E. Dr. Amr Talaat, Minister of Communications and
Information Technology, along with several senior executives from both
companies.

H.E. Dr. Amr Talaat, Minister of Communications and Information Technology,
commented:

"The agreements between Telecom Egypt and Vodafone Egypt are a testament to
the significant progress made by the telecommunications and information
technology sector in Egypt, particularly with the issuance of 5G service
licenses to telecom operators. As 5G technology relies on a robust fiber optic
network to connect supporting towers, these agreements serve as the
cornerstone for the 5G rollout, enabling both companies to work together to
deliver enhanced services to citizens. It is also important to highlight the
considerable efforts made in recent years to strengthen mobile network
infrastructure. Earlier this year, mobile operators in Egypt were granted
licenses for 5G services, with an investment of USD 675 million. Additionally,
the number of mobile towers has doubled over the past five years, reaching
over 36,000 towers nationwide. Over the past two years, more than EGP 8.8
billion has been invested-equally shared between the four mobile operators and
the National Telecommunications Regulatory Authority-to expand the network of
mobile towers in the villages of the 'Haya Karima' initiative. The mobile
network coverage for all phases of this project is expected to be completed by
the end of the first quarter of next year."

Mohamed Abdallah, Chief Executive Officer of Vodafone Egypt, commented:

"We are pleased to sign this important strategic partnership with Telecom
Egypt, making Vodafone Egypt one of the largest infrastructure investors in
the country. This partnership reflects our commitment to leveraging the latest
technological solutions that will enable us to provide high-quality services
to our customers in Egypt. It also underscores our efforts to continue
investing in the development of network infrastructure and the deployment of
high-speed fiber optics. This is part of our ambitious vision, following our
recent acquisition of the 5G services license with an investment exceeding USD
150 million. We are now on the verge of a new phase and are fully equipped to
offer the best services with the highest quality standards. We are committed
to achieving successive accomplishments that meet our customers' expectations
and support our vision of leading Egypt's digital transformation, in line with
Egypt's Vision 2030."

Mohamed Nasr, Managing Director and Chief Executive Officer of Telecom Egypt,
commented:

"We are thrilled to strengthen our strategic partnership with one of our
largest customers, Vodafone Egypt, by providing the infrastructure that will
enable it to enhance its services and roll out 5G technologies. Telecom Egypt
remains steadfast in its commitment to advancing the telecommunications sector
in Egypt, leveraging its technical expertise and state-of-the-art
infrastructure to support this goal. We are committed to driving Egypt's
digital transformation and shaping a better future for telecommunications
services, in line with the rapid global advancements in the telecommunications
and information technology sector."

 

- End -

 

About Vodafone Egypt

 

Vodafone is the largest telecommunications company in Egypt, and our strategy
is to shape the future for the new digital world while continuing to put our
customers first. For more than 25 years, we have invested more than EGP 100
billion to make a tangible difference in the lives of over 48 million
customers, through our exceptional team of 10,000 employees. We impressed the
market with innovative products & services and a seamless digital customer
experience. We were the first to launch Vodafone Cash mobile wallet, aiming to
facilitate the lives of over 20 million Egyptians by providing access to
digital solutions and financial services. In 2003, we established Vodafone
Egypt Foundation for community development and invested EGP 700 million in
high-impact projects, benefiting 11 million Egyptians.

 

Our purpose is to connect for a better future by using technology to improve
lives, businesses and help progress inclusive sustainable societies. We are
committed to operating 100% on renewable energy by 2025.

 

For more information, please visit https://web.vodafone.com.eg/en/home
(https://web.vodafone.com.eg/en/home) or connect with us on LinkedIn at
www.linkedin.com/company/vodafone (http://www.linkedin.com/company/vodafone) .

 

About Telecom Egypt

 

Telecom Egypt is a total telecom operator in Egypt, providing a wide array of
telecom services to a diverse customer base. Serving individuals, communities,
SOHOs, SMEs and large enterprises, Telecom Egypt offers a comprehensive,
innovative, and diversified portfolio of services, ranging from fixed and
mobile voice to essential data solutions that are crucial in today's digital
landscape. These services also include high-speed internet, smart solutions,
data center facilities, and cloud computing solutions tailored for businesses.

With a rich heritage of about 170 years, Telecom Egypt continues to lead the
Egyptian telecom market by providing cutting-edge technology, robust
infrastructure, and an extensive network of subsea cables to meet the needs of
its enterprise and consumer clientele. The company's pivotal role in Egypt's
telecommunications landscape is underscored by its expansive network coverage,
broad service range, and dedication to fostering innovation. Aside from its
mobile operation "WE", Telecom Egypt holds a significant 45% ownership stake
in Vodafone Egypt. Telecom Egypt'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 (mailto:investor.relations@te.eg)

Website: ir.te.eg (https://ir.te.eg/en/CorporateNews/PressReleases)

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