The current legislation does not allow the production and commercial exploitation of alternative telecommunications networks. As such, there is no law governing the operation of alternative telecommunications networks in Egypt.

1.1. Regulation of telecommunications and alternative networks

Currently, the Egyptian Telecommunications Company "Telecom Egypt" established under the law 153 of 1980 is the sole provider of certain telecommunications facilities and services in Egypt. It operates with complete autonomy in the telecommunications field with regards to both national and international operations, within the guidelines and general framework of the state.

The current legislation does not allow the productions and commercial exploitation of alternative telecommunications networks, other than the network of the state-owned cable TV station CNE.

Since the establishment of the newly formed ministry of telecommunications and information in September 1999, there is a prevailing trend towards telecommunications liberalization.

Telecom Egypt, the state-owned telecommunications service provider of the country still enjoys the monopoly as far as fixed line telecommunications (voice telephony and data transmission) are concerned. However, the markets for mobile telecommunications, pay phones, pre-paid international call cards, and Internet services have already been liberalized (towards this end, the government has privatized the state-owned GSM operator back in 1998 and opened the market for a second provider).

Furthermore, there is a growing trend towards the deregulation of telecommunications, which would consequently lead to the complete liberalization of the entire telecommunications sector.

1.2. Regulation and status of public utilities and public organisations regarding a potential entry in the alternative network industry

The above-mentioned legislation poses a major legal barrier preventing the establishment and commercial exploitation of any alternative networks. In this respect, no organisation was yet found to have developed commercial alternative networks.

However, the anticipated liberalisation and privatisation of telecommunications services is expected to yield good opportunities for other (mainly private) organisations to enter the field.

2.1 Types of companies offering networks : description, choice and strategies

Even though no public utility company currently offers alternative telecommunications networks, the prevailing trend towards telecommunications deregulation suggest that there are prospects for one of the utility providers of the country to embark on such a venture. With this rationale, the developments taking place within each of these providers (even though, not directly related to alternative networks) are listed below :

Currently, there are four state-owned public utility service providers in Egypt. Namely, these are the "Electricity Authority of Egypt" for power generation and distribution, the "Petrogas Company" for gas distribution, the "Water and Works Authority" for water supply, and the "Telecom Egypt" for telecommunications services.

Electricity Authority of Egypt

There is on-going work on the linkage of Egypt's electricity network with other countries in the region, including a $239-million link with Jordan which was completed in October 1998. The final phase of the high-tension 500 MW cables project has already been completed. The cables were mounted across the Suez Canal on giant 220m high towers.This is the first phase of a five country interconnection of Egypt's system with those of Jordan, Syria, Turkey, and Iraq, and it is scheduled to be completed by 2002. Furthermore, Egypt also activated a link to Libya's electric network in December 1999.

A 500 MW, 330 km power transmission line between Suez and Taba has been completed at a cost of LE 150 million. A power transmission line from Alexandria to As-Salloum has been completed. Both national networks have been linked with a 420 km line. Four giant transformer plants have been set up at Al-Amereya, Al-Alamain, Marsa-Matrouh and As-Salloum. Final tests are underway to operate the electrical links of the 170 km line between As-Salloum and Tobrouq.

Finally, the Arab-European Linkage Project is to be carried out through 3 axes:

• Eastward through Turkey after the completion of linkage between Syria and Turkey.
• Westward from Morocco to Spain through a 400 KV, 26 km, 615m deep marine cable. The linkage has been implemented and is currently operating.
• Several possible approaches are being studied to come up with the optimum solution for linkage with Europe.

Oil

Egypt has a strategic importance because of its operation of the Suez Canal and SUMED (Suez-Mediterranean) Pipeline, these being two routes for export of Persian Gulf oil. The Suez Canal Authority (SCA) carries on with enhancement and enlargement projects on the canal. The canal has been deepened so that it can hold the world's largest bulk carriers. Deepening works are expected to continue.

The SUMED (Suez-Mediterranean) pipeline is an alternative to the Suez Canal for transporting oil from the Persian Gulf region to the Mediterranean. The 200-mile pipeline runs from Ain Sukhna on the Gulf of Suez to Sidi Kerir on the Mediterranean. The SUMED's original capacity was 1.6 million bbl/d, but with the completion of the Dashour pumping station, located south of Cairo, capacity has increased to 2.5 million bbl/d. The pipeline is owned by the Arab Petroleum Pipeline Company (APP), a joint venture between Egypt (50%), Saudi Arabia (15%), Kuwait (15%), the U.A.E. (15%), and Qatar (5%). The APP also has been increasing storage capacity at the Ain Sukhna and Sidi Kerir terminals.

Petrogas (natural gas distribution)

The most ambitious idea for gas exports is a sub sea Mediterranean pipeline, which would connect Egypt with Israel and Gaza, with the possibility of eventual links to Lebanon, Syria and Turkey. On December 22, 1999, an agreement was announced on the gas exports from Egypt to Israel and Gaza. A pipeline is to be extended from El-Arish in Sinai to Israel and Gaza, initially supplying gas-fired power plants along the coast. Construction is due to be completed by early 2002.

Railways Authority of Egypt

Railways are operated by the state owned authority for railways under the auspices of the ministry of transportation. Railways covering 1,460 km were added and 4,580 km of the existing network were revamped.

2.2 Types of operators using the networks

Not applicable

2.3 Types of services offered by the operators on the networks

Not applicable