4G licence will not force Telecom Egypt to sell Vodafone stake

The landline monopoly owns a 45 percent stake in Vodafone Egypt but hopes to offer mobile phone services itself following the introduction of high-speed 4G mobile technology in Egypt.

The government announced in 2014 a plan to introduce 4G and at the time said Telecom Egypt would be allowed to offer mobile services if it paid 2.5 billion Egyptian pounds ($282 million) and sold its Vodafone stake within a year of offering the services.

"The telecommunications regulator is not forcing Telecom Egypt in official correspondence over its application to offer 4G services to get rid of its Vodafone stake," one of the sources told Reuters.


"Telecom Egypt will not keep its stake in Vodafone long term after it offers mobile phone services but will sell when it gets an offer for a good price," a second source told Reuters.

Egypt is selling the 4G licences as part of a long-awaited plan to reform the country's telecoms sector and the regulator has confirmed it has approached the three companies that currently offer mobile services - Orange Egypt, Vodafone Egypt, and Etisalat - about buying them.

The reforms will allow Telecom Egypt to enter the mobile phone market directly, while allowing mobile operators to offer fixed line services, ending its domination of the sector.