Egyptian cellco Mobinil revealed yesterday that it hopes to return to profit in 2013, reports Reuters. Last month the company revealed that it lost EGP94 million (USD15.4 million) during the first nine months of 2012 on the back of rising costs involved with migrating to 3G and political volatility. Speaking at a news conference in Cairo, Yves Gauthier, CEO of Mobinil, said: ‘Our position in the market is much better this [year] than last year. We will continue to invest. 2013 will be a year of profitability’. The executive went on to say that Mobinil is seeking to secure a 4G licence soon.
Meanwhile Stephane Richard, chairman and CEO of France Telecom-Orange, the company which secured control of Mobinil earlier this year, warned that Egypt’s mobile market could not support a fourth provider. ‘There is no growth in the [Egyptian] telecom market anymore. I don’t see how it is profitable to invest in a market where there is no growth. So there is no economic justification to introduce a new player,’ said Richard. ‘We are working on a mobile banking service which will be something quite new and interesting for our users. We have to switch from business models which were basically founded on voice revenue to a business model with a larger part on services and data revenue provided that we are able to invent an economic model for those services.’