By: Heba El-Kordy

Cairo – Mubasher: Orange Egypt for Telecommunications and Telecom Egypt (TE) were able to sort out their long-lasting disputes over EGP 74 million.

Analysts expressed different opinions on the impact of the settlement on both firms over the coming period.

In November, Orange Egypt said that it had signed an EGP 74 million settlement agreement with TE.

Orange’s financial situation

Orange Egypt will benefit from settling disputes with TE, telecom analyst at Pharos Holding for Financial Investments Mohamed El-Messiry said, adding that it will adversely affect TE’s financial situation.

Settling debts will be reflected on the decline in Orange’s losses since the agreement has been signed, El-Messiry added.

On the other hand, TE said that this agreement will add EGP 49 million to its 2017 fourth-quarter revenues.

Operational revenues

Moreover, telecom analyst at Beltone Financial Ahmed Adel said that both firms will benefit from the settlement agreement in terms of operational revenues.

In September, TE announced the official launch of Egypt’s first fully-integrated telecom “WE”.

This agreement may direct both firms to sign a local roaming agreement, Adel added, noting that TE needs to extend its local roaming services, which will bolster the company’s financials over the coming period.

The analyst indicated that Etisalat Egypt is still the only local roaming services provider in Egypt.

Translated by: Mai Ezz El-Din