NTRA agreed to Set Free the Promotional Offers of Mobile Services

Within the framework of free competition, the National Telecommunications Regulatory Authority (NTRA) Board of Directors, Headed By Dr. Tarek Kamel Minister of Communications and Information Technology, agreed to set free the promotional offers and pricing for the three mobile Operators starting from 1st January 2010.

The mobile Operators must inform the NTRA of these offers 24 hours before announcing them. This will take place pursuant to the following terms and regulations:

  1. The price rates (of the promotional offers) are higher than the costs in a way that prevents dumping. The concerned entities will follow up on this and interfere to stop these offers in case of need.
  2. The promotional offers must be presented within non-monopolistic practices and must not violate rules of free competition. This will be discussed and the concerned entities will interfere to stop these offers in case these practices are proven.
  3. Promotional offers must not affect the quality of service. The NTRA will monitor quality assurance to know how far the Quality of Service is affected. In case the quality of service is affected the offer will be stopped immediately.
  4. The charges for the mobile-to-fixed call per minute should not exceed the charges for the mobile call to any other mobile network per minute.
  5. The NTRA shall determine the interconnection on any fixed or mobile network as per the On-net call rate according to the NTRA’s previous decisions and resolutions in this concern.
  6. The Operators must abide by the equal pricing among all mobile Operators.

NTRA attributed such decisions to the arrival of the mobile market in Egypt to the stage of maturity and stability, especially after a period of three years from the operation of the  third mobile network, not to mention the consecutive reductions the Operators used to make, in an environment of positive competition, all for the benefit of the subscriber.

The Board of Directors discussed the applications and requests of the companies that purchased the RFP of the 2 licenses of Mobile Networks in Closed Compounds. It is worth-mentioning that one of the most important decisions in this concern has been the increase of residential units in the Closed Compound from 5,000 units to 10,000 units and the increase of the license term from 10 years to 15 years.