Hungarian telecom operator 4iG and Telecom Egypt have agreed upon the terms of cooperation for the construction of the express subsea cable between Albania and Egypt. This agreement follows the signing of a Memorandum of Understanding (MoU) in October 2023. Under the terms of the agreement, both companies will establish a joint venture for the intercontinental subsea cable project.
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Albania and Egypt Link
The express subsea cable will create a high-capacity, intercontinental connection linking Africa and Asia—through the Red Sea—to Europe, via Egypt, the Mediterranean, and Albania, said the joint statement.
4iG's Chairman and Telecom Egypt's Managing Director and CEO have signed the agreement in Budapest, Hungary, in the presence of the Minister of National Economy of Hungary and the Minister of Communications and Information Technology of Egypt, along with top officials from both companies.
As the first cable to link the two countries, the planned subsea cable's Mediterranean route will be quite unique, adding another layer of diversity to the conventional Mediterranean routes linking Egypt to Italy and France, according to the official statement.
Strategic Significance
The link is expected to capture a significant share of the huge and rapidly growing data traffic market between Asia, East Africa, and Europe. The cable system will have the option to be extended to Mediterranean destinations such as Libya, Cyprus, and Greece. Additionally, the initial configuration of the subsea cable will also include a branch to Italy.
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Egypt's end of the cable will provide access to various subsea cables running southeast via the Red Sea to Asia and Africa, in addition to more than 10 terrestrial trans-Egypt routes connecting the Mediterranean cable segment to other cable extension options in the Red Sea. On Albania's end, the system will provide the shortest path to Frankfurt, as well as other important international traffic destinations in Eastern and Central Europe and the Balkans, such as Sofia, Vienna, and Budapest.
Future Expansion Plans
The Minister of Communications and Information Technology of Egypt noted that more than 90 percent of the international data traffic between the East and the West passes through the country. With 14 international subsea cables currently in service, work is underway to establish another 5 international subsea cables through international alliances.
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4iG is a Hungarian majority-owned company based in Budapest, Hungary, with a presence in Hungary and the Western Balkans. Telecom Egypt, apart from its mobile operations brand, "We," owns a 45 percent stake in Vodafone Egypt.
