Telecom Egypt acquires 4G license for $800 million

A Telecom Egypt building is seen at the Smart Village in the outskirts of Cairo, Egypt, October 27, 2015.  REUTERS/Asmaa Waguih

Telecom Egypt has become the first operator in the country to acquire a concession allowing it to offer 4G technology, according to a report from Bloomberg.

With the fixed line incumbent having agreed to pay the sum of EGP 7.08 billion (approx. $806 million USD) for its 4G concession, it is understood that it has paid EGP5.2 billion of that upfront, with the remainder to be paid in installments over a four-year period.

The report stated that Telecom Egypt will not be required to sell its 45% stake in local telco, Vodafone Egypt as part of the license terms, with the National Telecommunication Regulatory Authority (NTRA) instead saying it will ‘ensure’ competition and governance compliance.

With TE now expected to begin trial operations of its own 4G network within six months of receiving its frequencies, it will reportedly offer 2G and 3G services via other carriers’ networks, and it has been given two months to agree on interconnection rates; should an agreement not be reached the NTRA will reportedly step in to determine the charges.

Via: Telegeography | Image via: Reuters/Asmaa Waguih

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