Fixed-line incumbent Telecom Egypt (TE) has been offered a mobile licence for E£2.5bn (US$358m), telecoms minister Atef Helmy told journalists today.
It is not known whether TE has agreed to buy the licence and the company was not immediately available…
Fixed-line incumbent Telecom Egypt (TE) has been offered a mobile licence for E£2.5bn (US$358m), telecoms minister Atef Helmy told journalists today.
It is not known whether TE has agreed to buy the licence and the company was not immediately available to comment.
But the operator has long petitioned to be awarded the permit, which would allow it to use its rivals’ network to provide mobile services.
However, two of the existing wireless players have expressed concerns. Vodafone Egypt, in which TE has a 45% stake, is worried that the new licence would unfairly favour the fixed-line monopoly and create a conflict of interest.
Earlier this year, Vodafone forwarded its concerns to the Egyptian authorities. Depending on the response, it could consider international arbitration “to protect our shareholders’ interests”, the company said last week.
Vodafone had no additional comment today when contacted by TelecomFinance.
Meanwhile, French incumbent Orange, which operates number two Mobinil, told TelecomFinance last week that it believes “the introduction of a new mobile operator would inevitably lead to the destruction of value across the entire market”.
It added: “Orange will carefully examine the terms and conditions of the new licences before establishing its position with regards to possible action if the conditions are considered to be inequitable.”
The company was not immediately available to provide further comments today.
Etisalat, the third mobile operator, could not be reached.
Last year, there was speculation that once TE launches its own mobile offering, it may decide to offload its shareholding in Vodafone Egypt. However in November, a TE spokesperson said that gaining an MVNO licence would not require it to sell its stake and that the company was not looking to exit Vodafone.
In return for TE gaining access to its competitors’ networks, the mobile players will be able to use the fixed telco’s networks. Such a licence has been priced at E£100m (US$14.3m), Helmy reportedly added.
