Egypt plans to keep Vodafone stake

nder former CEO Mohamed Elnawawy, removed in May, TE planned to pay 2.5 billion Egyptian pounds ($311 million) for a 3G mobile licence in a deal that would also involve existing mobile providers gaining entrance to the landline market.

But disputes between TE, the state and mobile carriers Mobinil, Etisalat and Vodafone Egypt stalled the reforms. TE owns 45 percent of Vodafone Egypt and the government had demanded it sell this before offering its own mobile services. TE refused.

With Elnawawy out of the picture, some analysts have speculated that 80 percent state-owned TE, may no longer seek to enter the mobile market.

But in an interview at the Reuters Middle East Investment Summit, new CEO Osama Yassin said he was seeking mobile access and was focusing on the planned rollout of high-speed 4G services set for 2016. Like his predecessor, he insisted mobile access should not be contingent on a Vodafone Egypt sale.