Egypt’s Communication and Mobile Syndicate (CMS) threatened to sue the three mobile network operators (MNOs)—Vodafone, Etisalat, and Orange—if they do not compensate mobile phone retailers after the National Telecommunications Regulatory Authority (NTRA) banned sales of new mobile lines through distributors as of March.
The syndicate has granted the three MNOs a grace period until 20 March to settle the issue before it takes legal measures against them.
Chairperson of CMS, Mohamed Al-Mahdi, said that the NTRA’s decision to limit sales of phone lines to 50 per month was issued two months ago, noting that the syndicate asked the MNOs to intervene and defend their rights but they argued that they were also affected by the NTRA’s decision.
Al-Mahdi justified the MNOs’ delay in settling the issue with the mobile market’s saturation as there are more than 100 million subscribers of mobile services in addition to the recent launch of the fourth mobile operator “We”, which will decline mobile line sales significantly.
He noted that the NTRA’s decision was actually for the benefit of the MNOs, ridding of the burden of retailers, even though he demanded the mobile operators compensate the distributors who incurred heavy expenses in the past period to make their shops meet the conditions of mobile operators.