The Egyptian government could licence a fourth mobile phone operator as early as October this year, according to a senior Vodafone executive who met the Egyptian minister of communications in March.
When the UAE telco Etisalat won the third mobile phone…
The Egyptian government could licence a fourth mobile phone operator as early as October this year, according to a senior Vodafone executive who met the Egyptian minister of communications in March.
When the UAE telco Etisalat won the third mobile phone licence in the country back in 2006, the Egyptian authorities agreed to give Etisalat until at least October 2010 to establish itself in the market before licencing a new competitor.
On 13 May, Tarek Tantawy, the head of Egypt’s fixed-line monopoly Telecom Egypt, reignited speculation that the state would soon licence a new mobile operator when he said that he hoped his company would soon get a licence.
As Telecom Egypt owns 45% of Vodafone’s Egyptian subsidiary, some of the analysts who cover Vodafone expressed concern about the fate of the company.
According to Nick Read, the chief executive officer of the Asia Pacific and Middle East region at Vodafone, Egypt’s communications minister Tarek Kamel has said that the state may launch an auction for a fourth licence later this year.
“I met with the minister two months ago and his consideration was that it is an option that could be done. It’s all related to Etisalat’s window that’s due to come off in October this year. There is speculation in the market and Telecom Egypt is adding to that speculation,” Read said.
However, both Read and Vittorio Colao, Vodafone Group CEO, denied that the UK operator had problems with its minority shareholder in Egypt.
“We have a very good relationship with Telecom Egypt and with the government. What I can tell you is that it’s a very positive, friendly, mutually win-win type of situation,” said Colao.
