Telecom Egypt (TE) raised the fees of landlines subscriptions last week starting from October bills. The company attributed the increase to the rise in costs following the float of the pound. This raises the question: how much revenues will be realised from this?
TE changed to fees to EGP 15 per month, up by EGP 3 from EGP 12 before. This means that customers will pay a total of EGP 45 for the three-month bills, instead of EGP 36, up by EGP 9 every month. This gives clients 50 extra minutes more per month.
After this increase, TE will make an extra of EGP 56.3m from the increase alone, which comes from the 6.27 million clients paying EGP 9 extra on every bill. This adds up to EGP 282.1m, in addition to the extra calls on the bills, up from EGP 225.7m on a three-month basis.
TE changed the fees for signing for new lines to EGP 60 next to tax and fees, including a three-month subscription of EGP 45, EGP 10 for installing, and EGP 5 for administration fees, as well as the stamp value of EGP 6.1 and the value added tax (VAT).
The company attributed the increase to the rise in operation costs, as the fees have not been moved over the last 10 years, while the prices of cables and investments for changing the ground cables to improve quality have increased.
TE obtained license to provide 4G services for EGP 5.5bn. The company obtained 15 MHz. This is in addition to EGP 2.2bn as fees for offering mobile services. The company launched its mobile services a few weeks ago with the brand name We. The company is now selling its mobile lines in main telecommunications centers at EGP 15 per line.