TELECOMMUNICATIONS II

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The Second Telecommunications Project will support the most urgent new works of ARETO's 1978-80 program for rehabilitation and improvement of Egypt's inadequate telecommunications system which is creating a major bottleneck in the country's development process. The project will (i) provide some relief to the huge backlog in demand for telephones through the installation of about 226,000 local exchange lines; (ii) improve long distance telephone services through about 5,000 additional trunk exchange lines; and (iii) expand telex services through an additional 3,000 line telex exchange in Cairo. With the project, system congestion will decrease and existing telecommunications facilities will be used more efficiently. User resources presently wasted on higher cost means of communication will be saved. Further, losses of production and marketing efficiency, caused by the present lack of communication, will be reduced and expansion of industries and activities that rely on good communications will be facilitated.