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Showing posts with the label Telecom Egypt

The Mysterious East-to-Med Corridor Cable

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This project seeks to link Asia to Europe via the Saudi Arabian desert. Telecom Egypt is not a consortium member, which suggests it will bypass Egypt to avoid transit fees and provide new network routing diversity. Frankly, little known is about the project. Key consortium members including center3, a Saudi Telecom subsidiary, the Cyprus incumbent, a Greek power company, and a Greek satellite company. The consortium was formed on May 31, 2022. In May 2023, center3 signed a supply contract for the project with ASN. A supply contract in force suggests the consortium has raised the $850 million required to complete the project.  I believe the high price tag reflects either a new route across the Saudi Arabian desert or a high fibre pair count. The project is bound to be controversial in Saudi Arabia because the terrestrial route traverses Jordan's Aqaba data center and reaches the Mediterranean Sea via Israel. Note that the Jordan label is much larger than the Israel label. This proba...

Successor To AAE1 Announced: AAE2

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Rumors have been floating around for several months about a successor project to AAE1 known as AAE2. Like AAE1, the key goal is to connect Hong Kong and Singapore to India, the Middle East, and Europe. The core consortium includes PCCW, Telecom Egypt, Omantel, and Sparkle. Just like other recent projects such as SMW6, AAE2 will avoid the Red Sea. Instead, the cable will land in Oman, then traverse Saudi Arabia and Egypt to reach the Red Sea. I applaud the cable's designers for ditching the Red Sea. It was long overdue. However, a more logical approach is to avoid Egypt all together. The Saudi Arabian desert will be expensive. The consortium has increased both capex and opex further by using Egypt for transit. Egypt treats subsea cables the way a toll road treats cars. It extracts a monopoly fee from them. It makes no sense given that Israel has a competitive telecom market versus Egypt's pseudo competitive market.  Another interesting design feature is that Italy was mentioned ...

New Regional Subsea Cable: Egypt/Saudi Arabia.

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Telecom Egypt and Mobily are cooperating on a new subsea cable connecting Egypt and Saudi Arabia. Telecom Egypt is a PTT whereas Mobily is a competitive Saudi Arabian mobile operator. Few details regarding the project are available. Mobily is financing the project whereas TE is the cable landing partner. This project reflects a broad trend where competitive mobile providers are becoming more involved in connecting Middle Eastern countries both to reduce their own costs and also create strategic alliances. In fact, Mobily is following the same game plan as the much larger Vodafone and Bharti Airtel. As mobile voice and data traffic becomes increasingly international, mobile providers acquire more international capacity and often the wholesale market. Typically, they buy more than they need themselves because bigger purchases lower per bit costs. Then they sell the excess capacity in the wholesale market. This is how Bharti entered the wholesale telecom market. Most likely this new cabl...