BUSINESS TECHNOLOGY MEDIA FOR AFRICA

Telecom Egypt plans to launch mobile services

Telecom Egypt plans to launch mobile services
Staff Writer
By Staff Writer, ITWeb
12 Mar 2013

Egypt's sole fixed line operator, Telecom Egypt, plans to expand its business services by launching a mobile network later this year and is also considering investing in a 4G network next year.

Zawya Dow Jones reported that the country's landline provider is in negotiations with the National Telecommunications Regulatory Authority about the price of a mobile license.

Mohamed Elnawawy, Telecom Egypt's managing director and chief executive told Zawya Dow Jones that the cost of the license would be "modest".

"The strategy is very simple," said Elnawawy.

"Customers want total telecoms. Telecom Egypt is a customer company and we want to be a total customer provider," he explained.

It was further reported that Egypt's telecom regulator announced in December it would allow Telecom Egypt, which is 80%-owned by the government, to join three existing private telcos, Vodafone Egypt, Mobinil and Etisalat in offering mobile services.

The regulator will also eventually allow private mobile companies to establish fixed-line systems on existing infrastructure owned by Telecom Egypt.

Elnawawy told Zawya Dow Jones that Telecom Egypt would provide mobile services in the first year of operations by using the existing infrastructure of one of the current mobile operators.

According to Elnawawy after the first year the fixed line operator will consider bidding for a 4G, or long-term evolution, license and roll out its own mobile network.

On Monday the landline monopoly reported a 452 million Egyptian pound ($66.91 million) net profit in the fourth quarter and a 2.61 billion pound net profit for the 2012 full year, down 12.8 percent from 2011.

The company, which is banking on data services to offset lower fixed line income, also reported a 37.1% margin in its 2012 earnings before interest, taxes, depreciation and amortisation (EBITDA), versus 46.7% in 2011.

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