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Cabinet approves licence for new vehicle tracking company - Daily News Egypt

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Cabinet approves licence for new vehicle tracking company

Egyptian Tracking Services and Information Technology established with upwards of EGP 100m in capital


By Ahmed Al-Masri

Egypt’s cabinet has agreed to grant a license to the Egyptian Tracking Services and Information Technology (ETSIT) company allowing it to provide automated vehicle location (AVL) services.

The Armed Forces had also agreed to the licence, under the stipulation that the National Telecom Regulatory Authority be solely responsible for providing such services to the military.

The licence would allow the company to operate for a period of up to two years, until further studies could be conducted to better determine the necessary controls and finishing touches needed for the technology, in order to allow the country’s mobile service providers to take over and provide such services to customers.

The government had recently created ETSIT with a paid in capital of EGP 100m.

It was added that this licence would serve as an exception to a law passed in 2003 by Egypt’s then Commander in Chief of the Armed Forces Muhammad Tantawi which sought to ensure fair competition and prevent monopolistic practices in the AVL market. In terms of ownership, 43% is held by the Dahab Services and Supplies Company, a subsidiary of the Armed Forces; 30% by the Egyptian Company for Investment Projects, a subsidiary of the Egyptian General Intelligence Service; 25% by the Healthcare and Social Services Improvement Fund; and the remaining 2% owned by Telecom Egypt.

An official from within the Ministry of Communications stated that AVL services will help make Egypt’s streets safer, decreasing congestion and making Egypt’s thoroughfares more attractive to foreign investment, in addition to creating more job opportunities for youth. Such improvements will further help improve the security situation within the country, the official said, by combating the rise of car thefts and smuggling of petroleum derivatives.

The new company’s board of directors will include two members of the Armed Forces, in addition one from each of Egypt’s General Intelligence Service, Ministry of Interior and Ministry of Communications.

Company shares issued are set to total 100,000, each selling for EGP 1,000.

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http://www.dailynewsegypt.com/2013/05/29/cabinet-approves-licence-for-new-vehicle-tracking-company/
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