4iG inks deal for cable linking Egypt, Albania
Reading Time: 3 minutesHungarian-government-linked telco 4iG and Telecom Egypt will jointly construct an express subsea cable between Albania and Egypt.
Telecom Egypt is a major subsea cable operator, and last October signed a Memorandum of Understanding (MOU) with 4iG.
The cable will serve as a high-capacity, intercontinental connection linking Africa and Asia to Europe, via Egypt, the Mediterranean, and Albania.
Ministers, company officials present at signing
4iG Plc Chairman Gellert Jaszai and Telecom Egypt Managing Director and CEO Mohamed Nasr signed the agreement in Budapest, Hungary. Also present were Hungarian National Economy Minister Marton Nagy, and Egyptian Communications and Information Technology Minister Amr Talaat, and company officials.
The cable will add another layer to the conventional Mediterranean routes linking Egypt to Italy and France and is expected to obtain a major share of the proliferating data traffic market between Asia, East Africa, and Europe.
The system could at a later date be extended to Libya, Cyprus, and Greece, and will include a branch to Italy from the start. The system will provide the shortest path from Albania to Frankfurt, Sofia, Vienna and Budapest.
Nagy said: “There is no developed economy without a modern, competitive telecoms sector. Today, the digital economy accounts for 25% of GDP, and 17% of jobs,” he noted.
Controversial 4iG increasingly international player
In recent years 4iG has expanded into the Balkans, buying telcos in Albania and collaborating with the Montenegrin government on a 5G network. The Hungarian -government-linked firm has not untouched by controversy in recent years, however.
In November, a MOU signed by 4iG and China’s Huawei in November provoked anger from the US government, which local observers said could impact Hungary’s diplomatic relations with the US.
Earlier last year, Hungary finalised a deal – which it classified as ‘of national strategic importance’ – to acquire Vodafone Europe’s Hungarian unit for HUF 660bn (EUR 1.6bn) – the largest state purchase since the change of regime.
Nagy said at the time that “it is a primary objective of the government to establish national ownership in sectors of national strategic importance such as insurance and telecommunications, in addition to the banking, energy and media sectors.”
4iG chair hails ‘important step’ in firm’s global data communications network
On Wednesday, Talaat said: “We look forward to further cooperation between Egypt and Hungary in ICT. The most important feature of this cooperation is that it comes within the framework of working to implement a strategy targeting the Eastern Europe region to enhance business continuity and future expansions.
“Egypt is keen to expand its international digital infrastructure, especially given that more than 90% of the international data traffic between the East and the West passes through the country thanks to its distinguished geographical location.”
4iG now one of Hungary’s biggest companies
A medium-sized IT company until recent years, 4iG has become one of Hungary’s biggest and most strategically-prioritised firms, with a growing presence in the Balkans. The Hungarian majority-owned company has also entered the defence industry as a partner of Germany’s Rheinmetall and acquired a stake in Israeli satellite company Spacecom. Listed on the Budapest Stock Exchange, the 4iG Group now employs more than 8,000 people.
4iG chairman Jaszai said: “Today’s agreement is an important step for 4iG to become part of a global data communications network that can accelerate our growth and competitiveness in international markets. This project not only provides business opportunities, but also contributes to strengthening our international digital connections.
“Our strong market presence in Albania gives us the opportunity to make the additional onshore investments necessary for the success of the project and to open a new data gateway to Europe in cooperation with Telecom Egypt,” Jaszai added.