Investor Presentaiton
Road To Success
13
Telecom Egypt Road Map
Status Quo
Telecom Egypt offers fixed voice & broadband services. However, voice services are a dying business and there are no future for a
telecommunication company without a mobile arm.
Total Telecom
License
2G & 3G
Technology
te's customers have been asking for total telecom services, offering value for money. Now more than ever they desire a single supplier
for all of their telecom and data needs, with a single invoice. That's why te has been lobbying hard to acquire the Total Telecom License
to meet customers demands.
To build the total telecom model, we plan to start with it lightly. We are not willing to invest in 2G and 3G technologies at the moment
as they are outdated technologies. We'll be waiting for the 4G technology where the tech is worth investing in, which we believe will
generate revenues for the company and more generation of value for our customers. So, by then we'll be hybrid, roaming on 2G/3G to
offer traditional mobile voice service and operating 4G with heavy reliance on fixed access asset to offer real broadband services and
experience.
Commercial
Agreements
After the issuance of the Total Telecom License, te will negotiate, finalize and sign the appropriate commercial agreements with the
local operators to use and roam on their networks.
4G Technology
When the government announces the issuance of 4G spectrum in the short to medium term, te management would be interested in
applying for that spectrum, where te will optimally leverage on its fixed access asset to capitalize on the available synergies supporting
CAPEX and OPEX Saving where around 70% of the mobile traffic is generated from the Home/Enterprise Zones, allowing te to have
an edge over mobile operators.
Vodafone Egypt
Asset
With 4G technology deployment, investments and CAPEX needs are required, te shareholders will have to decide how it will evolve
with Vodafone Egypt's assets, be it a seller or buyer, until then te understands that there are no obligations to divest such assets. And,
the disposal of such assets is a General Assembly decision, where the shareholders will come to decide whether there is any
duplication in assets, which might hurt their interests.
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