Telecom Egypt signs $48m settlement with Etisalat Misr
Telecom Egypt announced in a release to the Egyptian Exchange that it has reached a final settlement agreement with Etisalat Misr in regards to a dispute on international calls' services.
The settlement covered the amounts gained from the start of rendering services to Etisalat Misr and until June 13, 2017.
According to the settlement, Telecom Egypt would pay $48 million to Etisalat Misr to mitigate an exposure of more than $100 million.
The settlement agreement was signed yesterday by Telecom Egypt and marks the end of all disputes between all mobile operators in Egypt.
In terms of financial impact on the P&L, Telecom Egypt had already formed provisions covering the total amount in Q4 of 2017.
“We are pleased to reach a final settlement with Etisalat Misr as we embark on a new era, where we are mitigating uncertainty and risk, while cleaning our balance sheet to ensure smooth financial performance in the future,", Telecom Egypt's MD and Chief Executive Officer, Ahmed el-Beheiry said.
Beheiry added that the new phase emphasizes the importance of partnership as the key to secure the ongoing cooperation between all mobile operators.
In November 2017, Orange Egypt for Telecommunications signed a LE 74 million settlement agreement with Telecom Egypt.
Cairo Economic Court compelled Orange in January 2017 to pay LE 49 million for TE as a compensation for passing international tariffs.