Telecommunication Regulation Law in Egypt
Supported by a community of more than 90 million, Egypt has one of the largest telecom businesses in North Africa. There is compelling competition in most sectors, while one key development has been the recent honor of unified licenses to allow operators to offer services in the fixed-line and mobile industries. The industry has witnessed substantial growth over the last few years, attracting many new players across the telecom ecosystem, including mobile operations, value-added services, passive infrastructure, and equipment manufacturing. Egypt’s telecommunications control has drawn offers from telecommunications providers, to be presented to engage in a new associated license for provision of communications services. Currently, state-owned operator, Telecom Egypt, has a monopoly over landline services and contracts use of its network support to Orange Egypt, Vodafone Egypt and Etisalat who all work in the mobile phone area. The unified license will enable all operators to give both fixed-line and mobile services, at higher speed, and will assist redress Telecom Egypt’s current monopoly over the fixed-line sector. This is likely to be a key investment opportunity in the Egyptian market – the request has already drawn interest from possible new entrants such as China Telecom Corp. and Saudi Telecom Co. Whilst such global interest in the area could increase engagement and benefit consumers, operators may need to adjust the way in which they work in an increasingly contentious environment.
Data protection remains to be a key challenge. To enhance their offers, telecoms workers are likely to use some sophisticated tools, such as employing superior analytics to collect information to predict customer behavior better and with a view to designating resources more efficiently. Although this grants operator more reaches to up-sell and cross-sell their products, it also appears in them holding more individual data with the resultant call to ensure it is adequately preserved. Egyptian law contains specific provisions relating to data protection. However, these are not as wide-reaching as the data protection laws carried in the UK Data Protection Act 1998 and the EU General Data Protection Regulation. For this logic, international telecoms executives and investors should ensure their local services employ data security policies at least as extensive as those used in their UK and European businesses. Such compatibility of systems will allow them to manage global compliance and prevent more extensive group breaks due to local operations, in Egypt.
The broader range of the unified license may lead operators to develop new support and unique service offerings to build market share. These operators will need to protect any intellectual property created as a result sufficiently. Although Egypt has detailed rules about preserving IP, it is essential for all investors starting new regulations to ensure they fully experience the local landscape for intellectual property security to ensure benefit in their investment is managed – Egypt is no different. Similarly, global labels and other universal protection should also be solicited.
The full range of possibilities and connected risk to investment will turn on the specific compromises that each of the telecoms providers agrees with the regulator and the result of ongoing and future improvements in local and international regulation.
The introduction of the unified license in Egypt is a significant step forward, and the conversion in the state-owned provider’s control of the sector should be a welcome sign of Egypt opening up for further inbound investment possibilities.
The Egyptian authorities give the telecom and IT sector in Egypt special attention. So now with nearly all businesses and government bodies shifting towards activities carried online as well as e-commerce, Sherif Saad Law offices, the leading telecommunication law firm in Egypt, has developed experience in the domain and on the laws and regulations that govern the telecommunications sector in Egypt. The telecom wave has brought upon some problems and disputes that require legal attention, and hence we offer advice on e-signatures, e-commerce, licensing as well as acquisition and transfer of shares in telecom projects.
National Security and Emergency Powers
The Electronic Communication Law represents extraordinary circumstances as severe scratches to the network, natural accidents, state of crisis or state of war. The Authority’s orders oblige administrators to execute emergency measures throughout the extraordinary circumstances. The relevant minister, in collaboration with the other companies legally authorized to cope with unusual circumstances and with the Authority on Electronic and Postal Communication, offers to the Council of Ministers the measures to be introduced in the notices assigned to the operators.
Additionally, under Law No. 8756, dated 26.3.2001 “On civil emergencies,” government officials have the freedom to use any private or public means or to support with organizations related to difficulties, to avoid or limit outcomes from disasters by the relevant laws, as long as such circumstances exist. This plan can be interpreted as also to be continued to a range of actions towards the system of electronic communication operators in national security orders or civil emergencies.
In the case of any dispute occurring between service providers about Interconnection arrangements between them, such dispute shall be referred to the NTRA to issue a decision thereon by the provisions of such contracts. The NTRA decision will be made without distinction between any of the service providers or in the interconnection charges to be sustained by them. The choice of the NTRA will take into consideration interconnection prices, expenses of technical interconnection and the cost of providing services which will not exceed what is to be considered inexpensive investment revenue. The NTRA will, when studying any of the disputes, have the power to ask any of the parties to submit the necessary papers or data. The decision announced by the NTRA in the dispute shall be conclusive. The minister concerned shall issue a resolution determining the rules and regulations for the procedures of such conflicts. It is forbidden to file any action before a Court of Law regarding such disputes except after a declaration is issued by the NTRA or after 60 days have elapsed from the date of submission, whichever is shorter.