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 Tuesday, June 15, 2010

Following an appeal by mobile network operator Egyptian Company for Mobile Services (MobiNil) against a September 2008 regulatory decision to lower interconnection rates, a Cairo court has overturned the original ruling, Reuters reports. The National Telecommunications Regulatory Authority (NTRA) had originally said that the fee which Telecom Egypt (TE) paid to connect fixed line calls to mobile phones must be lowered, after the fixed line incumbent complained that the rates at the time were making it less competitive. However, the latest ruling by the Administrative Court at the State Council has effectively nullified the lower fee, prompting the NTRA to say that it would not take any action until it had studied the details of the court’s decision in more detail.

According to TeleGeography’s GlobalComms Database, MobiNil said that under the September 2008 regulatory ruling TE requested that MobiNil drop its interconnection rates to below EGP0.15 (USD0.03) for termination on MobiNil’s network, and EGP0.10 to terminate on the fixed line network. MobiNil for its part claimed that it was willing to accept reductions in the interconnection rates, but only as part of a package including measures in the leased line sector, which the cellco argued was priced higher than its international counterparts.

Source: TeleGeography