Telecom Egypt and Orange Egypt agree to end raft of legal disputes

24 Nov 2017

Telecom Egypt and Orange Egypt have reached a final settlement agreement over ongoing disputes between the duo related to interconnection, infrastructure and international gateway services. Confirming the development via press release, Telecom Egypt noted that the settlement agreement brings to an end all pending disputes between the two companies covering the period from 2008 to October 2017 relating to interconnection, leased lines and international services. Within the framework of the deal, both companies have also agreed to undertake the necessary steps to waive any direct or indirect related legal proceedings.

In terms of financial impact for Telecom Egypt, based on the agreement the company has said it will book additional revenue of EGP49 million (USD2.8 million) and impairment to receivables of EGP225 million in 4Q17. The settlement agreement will, it claims, lead to a net positive cash flow of EGP74 million for the company.



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