New Telecom Regulatory Framework
Under the new regulatory framework, Law No. 19/1998 and Presidential Decree No. 101/1998 were issued to separate telecommunications services provision (operator and service provider) from the regulatory functions. The newly created Telecommunications Regulatory Authority (TRA) was assigned the independent regulatory functions and Telecom Egypt (TE), taking the responsibility of sole operator and service provider. In 1999, a new telecommunications law was drafted to further liberalize the telecommunications sector.
- The Telecom Regulatory Authority (TRA)
The primary functions of the TRA are to:
- Authorize and approve the provision of all new services in mobile, Internet, data and voice transmission networks.
- Introduce licensing services.
- Manage frequency spectrum.
- Encourage competition, ensure transparency and balance the relationship between service providers and consumers.
- Telecom Egypt : Egypt 's Incumbent Provider
Telecom Egypt was the sole public authority entrusted by law to provide all public telecommunications services in Egypt . Law No. 19/1998 transformed Telecom Egypt into a joint stock company, which would act only as the telecommunications operator and services provider. A maximum of 49 percent of the company can be sold to the private sector.
Plans by the MCIT for the partial privatization of Telecom Egypt are perceived as an essential factor for accelerating the company's performance, as well as a major component of the government's commitment to liberalization, and to the phasing out of government participation in service provision.
In addition to acting as the principal provider of telecommunications services in Egypt , TE offers fixed line services (domestic and international voice telephony), leased lines, data transmission services, and has started offering new Internet services, and other value-added services.
In an effort by Telecom Egypt to enhance its services in preparation for privatization; in addition to, administration, operational and marketing reforms to take place by the end of 2002, TE will start operating its own GSM mobile service once the four-year exclusive period for the two existing operators (MobiNil and Vodafone Egypt) expire. TE will be required to pay a LE1.975 billion ($428 million) license fee to the Telecom Regulatory Authority before the new system starts up.
Moreover, TE established a new IT and data arms known as Telecom Egypt IT "Masreya" (www.masreya.com.eg) and Telecom Egypt Data (TED) (www.gega.net)
- The Telecommunications Act (TA)
As the sector policymaker, MCIT in collaboration with private sector (operators, vendors and users) drafted a new Telecommunications Act (TA). The TA will gradually phase out the state's control over the provision of telecommunications services, by allowing more liberalized private-sector participation in telecommunications services. It will grant more freedom to companies operating in the sector when setting prices, subject to TRA approval.
The TA's measures call to:
- Encourage fair competition in the provision of telecommunication services and ensure transparency between operators.
- Address the provision of telecommunications services at affordable rates and establish a Universal Service Fund (US) to finance this objective.
- Protect consumer rights and offer quality service at affordable rates.
- Organize the licensing of fixed-wire and wireless communications services in a transparent and non-discriminatory environment.
- Handle the management of the frequency spectrum.
Empowering the role of the Telecommunications Regulatory Authority (TRA) and ensuring its independence.
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