Cairo: Vodafone Egypt and Etisalat Misr have signed licence deals allowing them to operate fourth-generation (4G) mobile services in Egypt, the country’s telecoms regulator said on Sunday.
Egypt is selling four 4G licences as part of a long-awaited plan to reform the telecoms sector and to raise money for stretched government finances.
The country’s three existing mobile phone operators — Orange, Vodafone and Etisalat — initially all turned down the 4G licences saying the amount of spectrum on offer was not sufficient to allow them to offer the service efficiently.
The regulator then announced that operators that paid for a licence entirely in dollars would be given priority in buying additional spectrum. US dollars are scarce in Egypt due to a long-running economic crisis.
Orange was first to sign the deal last week, paying $484 million (Dh1.7 billion) for the licence. Vodafone Egypt agreed to pay $335 million in a deal signed late on Saturday, the regulator said.
Etisalat Misr, the Egyptian unit of Etisalat, also signed a deal late on Saturday, and will pay $535.5 million. An official from Etisalat Misr said his firm would also receive 10 Megahertz of additional spectrum after the deal.
Both Etisalat Misr and Vodafone also agreed on fixed line phone service licences for $11.26 million each, the regulator said.
Telecom Egypt, the state’s fixed-line monopoly, was the only company to take up the original offer, buying a 4G licence in August for 7.08 billion Egyptian pounds ($797 million) to enter the mobile market directly for the first time.
Factbox: Orange Egypt surges after signing for 4G licence
Shares in Egyptian telecommunications firm Orange Egypt jump 10 per cent daily limit to 109.39 Egyptian pounds. The company signed deal with government, paying $484 million to operate fourth-generation mobile phone services; obtained 10 megahertz of spectrum instead of 7.5 initially on offer. Head of Egypt’s telecommunication regulator said Orange had also acquired licence to offer fixed-line services for a further $11 million.