Orange Foresee Challenges in Egypt

Orange foresee many challenges in the Egyptian internet market in the coming years. The Chief Executive Officer of Egypt Orange, Mr. Waseem Arsany said the internet market will face some challenges in the upcoming period, the most prominent of which is the lack of organization.

In an interview to the leading Egyptian newspaper, Daily News Egypt, Arsany said activating the company’s plans to cut its losses depends mainly on solving problems with MSAN street cabinets. Last year the telecom operator lost around 80,000 subscribers. Currently Orange has a customer base of less than 0.6 million in Egypt. The reason attributed to the loss was the Telecom Egypt’s decision to change the number of landlines while installing MSAN street cabinets. Telecom Egypt deployed fiber optic cables by replacing copper cables in an attempt to renovate Egypt’s telecom infrastructures.

Telecom Egypt (TE) is the sole owner of the telecommunication infrastructure in the country. Telecom Egypt continues to invest in renovation of telecommunication infrastructures by replacing copper cables. The country had suffered huge loss due to the civil conflict and unrest that stagnated the country’s path towards digital society.

Orange in Egypt had incurred losses estimated at 10% to 15% of its total revenue, totalling 11.26 million US dollars since mid-2014 until the end of 2015. Arsany said talks are ongoing with TE and the National Telecommunications Regulatory Authority (NTRA) to reach an immediate solution to the current crisis and reduce the company’s losses.

MSAN street cabinets used by the TE to modernise its infrastructure caused major losses to internet companies as their subscribers’ landline phones numbers have changed as a result of the replacement of copper cables with fibre-optic cables, with the exclusion of TE’s sister company TE-data.

Orange is planning to use 5.63 million US dollars out of the 10.13 million loan to cover the high costs of renovating its services. Orange used 4.5 million US dollars of the loan last year to renovate its services. The CEO said that the company has presented various offers to its subscribers, and sought to adjust the prices of services in accordance of the general vision of the Ministry of Communications and Information Technology. Orange Egypt was formerly known as Mobinil

Author: James

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