Two telecom companies announced progress in a deal that will see state-owned Telecom Egypt gain the right to launch mobile phone service, while rival companies will be allowed to bid for fixed-line licenses.
The deal will also bring 4G wireless service to Egypt. 4G is the fourth generation of mobile telecommunication technology and offers dramatically higher data transmission speeds than its predecessor, 3G, which is currently in use in Egypt.
Telecom Egypt announced Sunday that it has received official confirmation from Egypt’s National Telecom Regulatory Authority (NTRA) that it has been granted a 4G mobile license.
The license will allow the 80-percent state-owned company, which currently has a monopoly on fixed-line services, to operate in all aspects of the Egyptian mobile market. The company did not clarify the terms of the deal, or explain what will happen to its 44.95 percent stake in Vodafone Egypt, one of the country’s three existing mobile operators.
“Telecom Egypt is excited at having received official confirmation of the license award,” said Telecom Egypt CEO Tamer Gadalla in a press statement. “This move will enable TE to fulfill our long awaited goal of becoming a total telecommunications operator, by offering mobile services.”
In a statement to Egypt’s stock exchange, Orange Egypt said the NTRA asked the company to pay LE3.54 billion for a 4G license, half of which must be paid in US dollars. The company was also asked to pay LE100 million for a license to offer landline service and LE1.8 billion for the right to offer international calls.
Orange said it was considering the offer and had not yet made a decision.
Egypt’s remaining two operators, Vodafone and Etisalat have not yet announced any agreements with the NTRA. Vodafone told Reuters it received an offer a week ago, but did not clarify the details.
Egypt’s cabinet approved the granting of 4G licenses on May 4, and regulators promised that deals would follow soon.
The current effort to shake-up Egypt’s telecom sector follows years of failed negotiations over plans to sell a fourth mobile license to TE. Opponents argued that the deal, which would have granted TE the right to piggyback on other mobile operator’s infrastructure gave TE an unfair market advantage and created a conflict of interest due to TE’s stake in Vodafone.
In April 2014, telecom regulators announced they would offer TE the license for LE2.5 billion, but the agreement failed to progress. More recently, officials have been working to adopt a unified license, which will allow all telecoms the right to provide the full range of services, including both mobile and fixed-line voice and data services, as well as international calls.
Source: http://www.madamasr.com/news/economy/telecom-egypt-granted-4g-license-orange-offered-license-le35-bn