Telecom Egypt Launches First Direct Submarine Cable with Jordan

Telecom Egypt Launches First Direct Submarine Cable with Jordan

Telecom Egypt: Billions of Egyptian Pounds Annually to Boost Infrastructure

Telecom Egypt's Managing Director and CEO, Mohamed Nasr, stated that the company is continuing its strategy of expanding its submarine cable network to strengthen Egypt's position as a regional data transmission hub.

Nasr explained that the Coral Bridge project, which connects the Egyptian city of Taba to the Jordanian city of Aqaba, represents a strategic step to connect data traffic between neighboring countries via Egypt, then link it to fiber optic networks in the Sinai Peninsula, reaching the Mediterranean and Europe.

 He pointed out that the concept of "multiplicity" represents the essence of the current phase in the data industry, through diversifying cable routes and data centers, ensuring a robust and secure infrastructure capable of accommodating the massive growth in global data demand. He revealed that the company invests billions of Egyptian pounds annually in infrastructure, including landing stations, data centers, and the submarine cable network.

Telecom Egypt Launches First Direct Submarine Cable with Jordan in 25 Years

He added that the company allocates approximately 20% to 23% of its total revenues to investment spending, with a significant improvement in free cash flows, which reached approximately EGP 6 to 8 billion at the end of the recent period. This reflects the success of the company's plan to control debt, which declined to approximately EGP 70 billion. He explained that the revenue growth was supported by a more than 45% increase in demand for home data services in the first half of the year, in addition to increased international data traffic, which boosts the company's foreign currency revenues.

Service Prices

He emphasized that the recent increase in service prices was balanced and appropriate to address rising costs, noting that the company is keen to maintain its service prices at fair levels. He explained that any future increases will be gradual and considered, taking into account the growing volume of investments and evolving market needs, avoiding sudden leaps.

 He stated that the future of communications in Egypt is rapidly moving toward data services, amid a young society increasingly dependent on the internet for education, work, and entertainment. He noted that the company continues to replace copper networks with fiber optics to accommodate the significant growth in data consumption, while remaining committed to providing integrated services including high-quality internet, mobile, and fixed-line telephone services at competitive prices.

First direct submarine cable between Egypt and Jordan in 25 years

Telecom Egypt, in cooperation with the Jordanian company, Nightel, announced the completion of the Coral Bridge project to connect Egypt and Jordan via the high-capacity submarine cable. The cable was laid in the city of Taba in Egypt, then extended across the Gulf of Aqaba to reach the city of Aqaba in the Hashemite Kingdom of Jordan.

The Coral Bridge represents the first direct submarine cable between the two countries in more than 25 years, providing a high-speed digital connection supported by a large number of fiber optic pairs, enhancing the digital infrastructure in the Middle East. The cable also provides a seamless connection between Asia and Africa. Africa and Europe, benefiting from the strategic location of Egypt and Jordan and Telecom Egypt's extensive submarine cable network, supporting business growth locally, regionally, and internationally.

Separately, Telecom Egypt's consolidated profits jumped 61.5% year-on-year during the first half of this year, supported by improved profit margins, revenue growth, and a growing customer base. Net profit rose to EGP 10.5 billion, and the company's revenues from its 45% stake in Vodafone Egypt also jumped during the same period, a direct result of higher service prices.