Egypt offers long-awaited 4G licences

The launch of 4G licences in Egypt will help boost low user revenue for telecoms companies and improve service quality, with operators upgrading their infrastructure in preparation for commercial deployment, but the changes will see a shake-up of the competitive landscape as a result.

Four licenses are currently on offer, with Telecom Egypt (TE), the nationwide fixed-line operator, having acquired one at the end of August for LE7.08bn ($796.5m). The 15-year licence, which also includes 2G and 3G services, can be extended for another five years.

The other three mobile operators – Etisalat Misr, Orange Egypt and Vodafone Egypt – have also been approached by the National Telecom Regulatory Authority (NTRA), the sector regulator, who has set a deadline for September 22 to finalise their agreements.

The move will allow TE to enter the mobile telecoms market directly within six months; it already holds a 45% investment stake in Vodafone Egypt. In preparation for this step, the company is positioning itself as an all-inclusive operator and has begun rolling out 4G infrastructure, including fibre-optic cables.

“We will offer additional frequencies for the new 4G licences,” Yasser El Kady, minister of communications and information technology, told OBG. “This should allow Egyptian consumers to benefit from improved service.”