Home / Telecom Egypt casts doubt on payphone venture with Siemens

Telecom Egypt casts doubt on payphone venture with Siemens

Telecom Egypt (TE) has raised doubts over its proposed payphone partnership with Siemens.

Telecom Egypt (TE) has raised doubts over its proposed payphone partnership with Siemens.

The two companies have been discussing a plan to jointly manufacture public terminals, but look likely to delay or cancel the move because of a downturn in demand in markets abroad.

Although the payphone sector is growing in many parts of the region, including Egypt, rising GSM uptake has hit operations in several countries.

In Jordan, for example, two private service providers were recently shut down.

“The business case doesn’t look very encouraging,” says Akil Beshir, TE’s chairman. “The volumes would not really justify it. You need to have a good export channel but in many places the payphone business is going down,” he adds.

The move would have seen Siemens installing a local plant and receiving investment from the national operator.

A spokesperson for the German equipment supplier wouldn’t comment on whether the venture would go ahead.

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