Two cooperation agreements were signed this week between the Egyptian Ministry of Communications and Information Technology (MCIT), Telecom Egypt and Germany’s Siemens for the modernization and development of the information and communications industry in Egypt.
The five-year agreement concluded between MCIT and Siemens includes the establishment of a number of centers for training and support of Siemens' activities in the region with new investments of €72 million over the next five years. Furthermore, Siemens will establish in Egypt the first IP Center of Competence in the region that will include the development of multimedia applications in cooperation with Egyptian entrepreneurs.
These 2.2 million new contracted fixed lines will be supplied by EGTI, the Egyptian-German joint venture for manufacturing Siemens' switches. The local value-added in EGTI products is currently over 70 percent and expected to increase even more in the next few years. As a result of the realization of the planned activities under this agreement, the MCIT expects new exports of telecommunication products and services to be realized for up to €120 million over the next five years.
The agreement concluded between MCIT and Siemens seeks to promote Egypt as a regional leader in the area of information and communication technology and as a hub for the development of the information society, which is in line with the strategic objectives of the National Communications and Information Technology Plan.
The projected activities comprise the establishment of a Regional End-to-End Solutions Center for turnkey projects to support Siemens' activities in the Middle East, North and Central Africa. The establishment of the Center will lead to the creation of additional work opportunities, in addition to exporting products and services including network planning and other turn-key activities.
In addition, an expansion of the Regional Training Institute established in Egyptian German Telecommunication Industries (EGTI) is expected to serve other communication technologies beside the current switching technology. The Institute will provide training for telecommunication operators in Egypt and the region and for MCIT's Human Resources Development Program for young professionals in cooperation with the National Telecom Institute. The EGTI Training Institute is the only certified Siemens institute in the MENA region. Training activities will cover Middle East, North and Central Africa.
The program also envisages the establishment of a Regional Service Center to serve the Egyptian market as well as specific neighboring countries in the Middle East, North and Central Africa while creating new work opportunities in areas of technical support and consultancy services over the next five years.
Also, the establishment of Regional Sales Support Center to train and enable Egyptian engineers on the comprehensive scope of products and solutions is expected to play a pivotal role in the sales activities of Siemens in the region. In addition to the new job opportunities to be created, these regional sales activities will result in an increase of exports over the coming five years in the form of sales support and consultation.
The second agreement, signed between Telecom Egypt and Siemens, aims at the modernization and upgrading of Telecom Egypt's network for the deployment of 2.2 million new fixed lines serving Cairo, Upper Egypt, Canal Zone and Sinai with special focus on rural areas in order to increase the tele-density.
The MCIT-Siemens partnership is further expected to have a very positive impact on the Egyptian economy that will be realized through the creation of new work opportunities and the increase in the teledensity in Cairo, Upper Egypt, Suez, Canal Zone and Sinai up to about 17 percent by 2006. An increase in Telecom Egypt's revenues is also forecasted, mainly in foreign currency from international calls termination due to the increase in the telephone lines and improvement of the services.
New investments are expected, estimated at €72 million directed to the development of the information and communications industry in Egypt, in addition to existing investments in Egyptian companies of 540 Egyptian Pounds million. Exports of training, technical support services and telecommunications equipment in the value of €120 million out of Egypt and the creation of new distinctive job opportunities for Egyptian engineers in the areas of network planning, technical support, project implementation and project management. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
