Fixed-line incumbent Telecom Egypt (TE) confirmed it has received a E£2.5bn (US$358m) licence, without spectrum, to provide mobile services.
The “universal” permit allows the company to use the current wireless players’ networks. In return, the…
Fixed-line incumbent Telecom Egypt (TE) confirmed it has received a E£2.5bn (US$358m) licence, without spectrum, to provide mobile services.
The “universal” permit allows the company to use the current wireless players’ networks. In return, the country’s three mobile operators – Vodafone Egypt, Mobinil and Etisalat – will gain access to TE’s copper network for E£100m (US$14.4m).
At a later stage, TE “will have the right to obtain frequencies, like current mobile operators, according to the conditions approved by the National Telecommunications Regulators Authority (NTRA)”, it said in a statement.
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.
Meanwhile French incumbent Orange, which operates number two Mobinil, confirmed it has received the documents on the universal licences. It added: “We are currently looking at these documents and will establish our position following a complete analysis of the terms and conditions.”
There is speculation that once TE launches its own mobile offering, it will have to offload its shareholding in Vodafone Egypt.
A spokesman for TE told TelecomFinance today that the company currently has no plans for its interest in Vodafone Egypt. Once it acquires 4G spectrum and becomes a full MNO, the operator will assess its options regarding its stake in the mobile player, he said.
