November 14, 2008

Telecom Egypt and Orascom Telecom Holdings to Liquidate JV in Algeria

Telecom Egypt has jointly agreed with its partner, Orascom Telecom Holdings, to liquidate their joint venture in Algeria, Consortiume Algerien De Telecommunications.

Consortiume Algerien De Telecommunications was awarded the second fixed line license in Algeria in 2005 and since its inception the company has faced competitive difficulties. As a result, the company has not been able to operate as expected.

Akil Beshir, chairman and CEO of Telecom Egypt, said: "We still believe the Algerian market represents a very promising market for telecommunications services. However, given the competitive difficulties that we have been facing, we have decided to exit the Algerian market and direct our resources to other promising opportunities. For this reason, we have taken the unfortunate decision to liquidate our joint venture (JV) with immediate effect."