1 February 2024
ICT Minister Witnesses MoU Signing between Telecom Egypt, 4iG on First Subsea Cable Connecting Egypt, Albania


The Minister of Communications and Information Technology Amr Talaat and the Hungarian Minister of National Economy Márton Nagy have witnessed the signing of an agreement on the terms of cooperation between Telecom Egypt, the first integrated telecom operator in Egypt and one of the largest subsea cable operators in the region, and 4iG Plc., a leading telecommunications and IT company in the Balkans and Eastern Europe, in Budapest, Hungary.
 
The agreement aims to create an express subsea cable between Egypt and Albania, adding a new Mediterranean route and a new traffic entry to Europe to meet the growing demand for global data traffic from East to West. Under the agreement, a joint venture will be established between the two companies to construct the intercontinental subsea cable project.
 
The agreement was signed by Telecom Egypt Managing Director and CEO Mohamed Nasr and 4iG Plc. Chairman Gellért Jászai, in the presence of the Egyptian Ambassador to Hungary Mohamed El Shinawy.
 
The ICT Minister emphasized that the cooperation strengthens the century-long distinguished relations between Egypt and Hungary, which began when Hungary established its first consulate on February 1, 1924, in Alexandria, Egypt. He added that the strong ties between the two countries have fostered cooperation in many fields, such as transportation and culture.
 
The ICT Minister looked forward to establishing further cooperation between Egypt and Hungary in ICTs. He explained that the most important pillar of the cooperation is to implement a strategy targeting Eastern Europe to enhance business sustainability and future expansions.
 
The ICT Minister pointed out that Egypt is expanding its international digital infrastructure, as over 90% of the data transferred between the East and the West passes through Egypt due to its strategic geographic location. He stated that Egypt has 14 international subsea cables in service, and about five new ones are to be established through international alliances.
 
For his part, Nagy commended the agreement signed between the two companies for strengthening the geographical position of Egypt and Hungary in data transfer. He pointed to the distinctive bilateral relations between the two countries politically and economically. Nagy also pointed to the cooperation projects of the two countries, especially in the field of transportation, as well as the current ICT cooperation, particularly in light of signing an agreement between 4iG Plc. and Telecom Egypt to set up a submarine cable between landing stations in Albania and Egypt. The trade volume between Hungary and Egypt in 2010 was limited, while it has increased recently due to promoting commercial cooperation between the two countries, Nagy explained.
 
The signing of the agreement comes following the signing of a Memorandum of Understanding (MoU) between the two companies in October 2023. The new submarine cable adds another layer of diversity to the international traffic routes between Egypt and Europe through a new entrance to Europe in the Western Balkan, connecting the main Internet points of presence (PoPs) in Western Europe across diverse terrestrial transit networks. The two companies agreed to set up a cable to reach potential PoPs in the Mediterranean Basin, such as Italy, Libya, Cyprus, and Greece.
 
Under this agreement, Telecom Egypt will provide interconnection services on various subsea cables running from Asia and Africa via the Red Sea, in addition to more than 10 terrestrial trans-Egypt routes connecting the new Mediterranean cable segment to other cable extension options in the Red Sea. From the Albanian side, the cable system will provide the shortest path to Internet PoPs in Frankfurt, as well as other new international traffic destinations in Eastern and Central Europe and the Balkans, such as Sofia, Vienna, and Budapest.
 
For his part, Nasr stated that Telecom Egypt is setting up multiple international traffic routes connecting Egypt and beyond. He added that Telecom Egypt is pleased to cooperate with 4iG to build a brand-new cable system to cater for the booming growth in global data traffic from Asia and Africa across the diverse terrestrial transit network of Telecom Egypt linking the Mediterranean and the Red Sea. He highlighted that the strategic joint venture will enrich customers’ experiences and improve the services provided worldwide, serving to increase and diversify the trans-Mediterranean international network.
 
Jászai stated that the agreement represents an important step towards making 4iG part of the global data traffic network, accelerating its growth, and enhancing its competitiveness in global markets. He added that the project will not only create business opportunities but also contribute to strengthening international digital connections. 4iG strong market presence in Albania allows it to invest in infrastructure, supporting the project’s success and opening a new gateway to Europe in cooperation with Telecom Egypt.
 
With an established history of over 165 years and vast expertise in pioneering subsea intercontinental connectivity, Telecom Egypt is the partner-of-choice for a growing 160 major subsea cable players worldwide. It is committed to developing a diverse portfolio of offerings using cutting-edge solutions to keep pace with the increasing global demand for international connectivity, while providing the shortest and most reliable routes for its global partners. The company has heavily invested in the industry to diversify its international infrastructure, including landing points, cable systems, and terrestrial and subsea routes, both inside and outside of Egypt.
 
The signing ceremony was attended by the State Secretary for Industry Policy and Technology at the Hungarian Ministry for National Economy Gergely Fábián, the Deputy State Secretary for Technology at the Hungarian Ministry for National Economy Szabolcs Szolnoki, the Assistant ICT Minister for Strategy and Implementation Sherine El-Guindy, and Vice President for Electronic Transactions Security at the Information Technology Industry Development Agency (ITIDA) Hazem Nabil.
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