Building and Operating Submarine Fiber-Optic Cables, Landing Stations

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					October 3, 2007
                                  Licensing Framework
                               Building and Operating
   Submarine Fiber-Optic Cables, Landing Stations and Right of Way

Egypt’s strategic geographical position at the heart of the Arab world and at the road-
cross of the three continents Asia, Africa and Europe, provides the ideal path for
submarine cables linking East to West and North to South.

Aiming at liberalizing the international telecommunications sector and increasing the
competition by introducing new providers of international capacities, the NTRA will be
issuing licenses for building and operating submarine fiber-optic cables, landing stations,
and right of way in Egypt.

1.0 Applicants to the License Should Fulfill the Following Conditions:
       1.1 The consortium shall include at least two entities holding a license in Egypt
            allowing the direct connection with international cable systems.
       1.2 The consortium shall include a regional or international telecom operator(s).
       1.3 The consortium shall engage in building a new infrastructure capable of
            competing technically and economically with the other cables currently
            crossing Egypt. This infrastructure shall include laying new submarine fiber-
            optic cables in the Mediterranean and the Red Sea connecting South-East-
            Asia with Europe and building two submarine fiber-optic cable landing points
            in Egypt and landing points in Arab countries and Europe in a way that
            guaranties that these landing points directly cover a set of Arab countries
            whose needs for international communications capacities (voice and data) are
            at least 50% of the required capacities in the region.

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2.0 The License will Allow:

       2.1 Landing and Right-of-Way
       2.2 Terminating cables into Egypt
       2.3 Transiting Egypt without terminations into Egypt (can be a simple
             authorization that follows the rules and conditions set by the NTRA)

3.0 General Directives for Issuing a “Building And Operating Submarine Fiber-Optic
    Cable Landing Stations” License:

       3.1    The cable landing station shall be used to transmit voice and/or data and
       3.2    The cable landing station shall not be used in any illegal activity or against
              the public interest.
       3.3    The cable landing station shall be built according to the information
              presented to the NTRA. Any changes will be subject to a written approval
              from the NTRA.
       3.4    The applicant shall provide at least the following information regarding the
              submarine fiber-optic cable:
                3.4.1   The final detailed configuration.
                3.4.2   The cable path.
                3.4.3   The cable landing points along the cable path.
                3.4.4   The applicant shall commit to the detailed configuration as
                        approved in the license and shall not change or add any paths or
                        landing points or partners without a written approval from the
                3.4.5   The infrastructure that will be constructed and operated.
                3.4.6   The brand, type and technical specifications of the cable and its
                        related equipment.
                3.4.7   The technology used.

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               3.4.8   The number of fiber pairs and the planned capacity.
               3.4.9   The technical specifications of the network.
               3.4.10 The control and operation systems.
               3.4.11 The redundancy and restoration plans.
               3.4.12 Detailed Business Plan and Feasibility Study.
               3.4.13 Financial Capabilities of the consortium.
               3.4.14 Investment Plans and vision for creating a regional telecom hub in
       3.5   The NTRA will have the right to conduct unplanned visits to the landing
             station to check its activities.
       3.6   Any modification in the network including the building of new segments or
             landing stations will be subject to approval by the NTRA.
       3.7   Any changes to the type of provided services will be subject to approval by
             the NTRA.
       3.8   The applicant shall comply to the conditions to protect the environment, the
             national security, the safety at sea, the sea shore protection, the offshore
             petroleum structures and pipelines and any other infrastructure in the
             Egyptian national waters.
       3.9   The applicant shall abide by the terms of the Egyptian Telecom Law
             #10/2003 including the national security requirements.
       3.10 The applicant shall commit to pay an appropriate financial security as
             determined by the NTRA upon issuing the license.
       3.11 The applicant shall commit to pay the required upfront payment as well as
             the annual licensing fees, the royalty fees and the right-of-way fees to the
             NTRA. In case the applicant chooses to build his own cable and rent
             landing point services and beach manholes from Telecom Egypt, NTRA will
             ensure that the rental costs will be in line with international pricing

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4.0 Basic Terms and Conditions to be Included in a “Building And Operating
    Submarine Fiber-Optic Cable Landing Stations” License:
       4.1 Regarding the cable landing, the right-of-way, building and operating the
            cable and the landing infrastructure:
               4.1.1   The Licensee will have the right to terminate the cable on a PoP at
                       the landing station.
               4.1.2   The Licensee will have the right to connect the cable with other
                       cable systems authorized to land in Egypt after reaching
                       agreements with the relevant parties.
               4.1.3   The Licensee will be allowed to make connectivity and exchange
                       international services between the Middle East, Asia and Europe.
               4.1.4   The Licensee shall commit to the highest QoS as per the globally
                       recognized specifications.
               4.1.5   The Licensee shall commit to build an operation and maintenance
                       center operating 365x24x7
               4.1.6   The License will include the interconnection types, technology
                       used and the available capacity.
               4.1.7   The Licensee shall provide to the NTRA the final detailed
                       configuration and the MoU’s with the service providers and the
                       landing points.
               4.1.8   The Licensee shall provide the detailed plans to prevent the service
               4.1.9   The Licensee shall provide a detailed investment plan and abide by
               4.1.10 The Licensee shall get the necessary security authorizations from
                       the concerned entities in Egypt and shall abide by the national
                       security requirements as per the law # 10/2003
               4.1.11 The Licensee shall be incorporated in Egypt following the
                       Egyptian laws.
               4.1.12 The Licensee will be allowed to use the landing stations and beach
                       manholes of Telecom Egypt.

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       4.2 Regarding the “Traffic Conveyance Services” License, besides the above
            mentioned terms, this License will allow the Licensee to:
               4.2.1   Connect with the authorized Call Centers in Egyptian to carry their
                       international calls, subject to the NTRA’s regulations.
               4.2.2   Have the right to obtain a Right-of-Way following the announced
                       terms and conditions to lay cables transiting the Egyptian territory
                       without a connection with the national networks.
               4.2.3   Have the right to use the existing licensed landing points or to
                       obtain licenses for its own landing points.

SUBMARINE_v1.0.doc                                                                   5 of 5
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