Telecom Egypt and 4iG Group to Invest $600 Million in Egypt’s Fiber Network

Telecom Egypt, Egypt’s market leading telecom operator, and 4iG Group, the leading telecommunications and IT group in Hungary and the Western Balkans, signed a Memorandum of Understanding (MoU) to establish a joint venture to build, operate and commercialize Fiber-To-The-Home (FTTH) and Fiber-To-The-Site (FTTS) fiber access infrastructure on a wholesale basis in Egypt. The joint investment aims to build a most modern fiber network that provides at minimum around six million households access to a state-of-the-art, high-speed network in the future.

According to the agreement inked in Cairo, the proposed joint venture will be investing approximately USD 600 million to be delivered into Egypt’s fiber access infrastructure in the coming 10 years. During the months to come after the signing the MoU, 4iG Group and Telecom Egypt will agree on the business model, exact ownership structure, governance processes and technological details of the joint venture.

Mohamed Nasr, CEO of Telecom Egypt, and Gellért Jászai, Chairman of 4iG Group, signed the MoU in the presence of H.E. Prime Minister Dr. Mostafa Madbouly and H.E. Dr. Amr Talaat, Minister of Communications and Information Technology of Egypt, as well as top officials from both companies. The parties signed the preliminary agreement on the second day of the Egypt-EU Investment Conference inaugurated by the president of Egypt Abdel Fattah El-Sisi as well as the EU president Ursula Von Der Leyen.

This partnership aligns with Telecom Egypt’s plan to transform all areas into FTTH networks under the Ministry of Communications and Information Technology’s “Digital Egypt” strategy, in line with Egypt’s Vision 2030 for a digitally transformed society and a robust digital economy. On the mobile broadband side, connecting Mobile sites with fiber infrastructure will in turn empower the mobile networks to satisfy the growing demand for capacity and enable the real deployment of massive 5G rollouts.