Orascom forms subsidiaries for $34.3 million fiber optic cables

KARACHI (April 05 2005): The Orascom Telecom Holding (OTH) has formed two fully funded subsidiaries to build and operate submarine fiber optic cables at an estimated cost of $34.3 million to further expand its non-GSM telecom services. The submarine cables would connect Algeria and Pakistan with international telecommunications hubs. The OTH has selected Alcatel 'Submarine Networks and Tyco Telecommunications' to supply infrastructure for the two new subsidiaries.

A separate OTH subsidiary will deploy a 1,200 kilometers with 20 gigabit per second traffic flow in submarine cable system to connect Karachi to Fujairah in the United Arab Emirates.

The project is funded through a $22.3 million seven-year syndicated credit facility. The operation will commence in the second half of 2005.

The OTH owns 51 percent of the project in a joint venture with a regional investors.

The new company holds a 25-year non-exclusive license, granted in 2002, to establish, maintain and operate a private fiber optic landing station and sell capacity to licensed operators in Pakistan.

OTH chairman and chief executive officer Naguib Sawiris said in a statement on Monday that the undersea cable systems will give Orascom Telecom an edge in our most significant markets, Algeria and Pakistan and enhance our leading position as a full service telecommunications company providing all customers in these markets with quality international voice and data communications services."

"The project also underscores our confidence and commitment to the development of the telecom markets in Algeria and Pakistan," Sawiris added.-PR


Copyright Business Recorder, 2005