Telecom Egypt awaits regulatory decision on Vodafone Egypt stake

2 Jan 2013

Telecom Egypt (TE), the country’s monopoly fixed line operator, reportedly expects the local regulator to make a decision on its stake in local cellco Vodafone Egypt this year, in the wake of the announcement that the state plans to grant it a mobile network operator concession by mid-2013.

Late last month Reuters revealed that the Egyptian government plans to issue the fixed line incumbent with a mobile operator’s licence, with Amr Badawy, executive chairman of the National Telecommunications Regulatory Authority (NTRA), also noting that the country’s existing cellcos will be given the right to acquire a licence to offer fixed line services using TE’s infrastructure; no date for the introduction of these concessions has, however, been revealed.

Commenting on the fate of its shareholding in Vodafone Egypt – TE currently owns 45% of the cellco – Ahmed Labib, TE’s investor relations manager, has been cited by Bloomberg as saying: ‘We are waiting for a decision by the regulator on whether we will be forced to divest from Vodafone Egypt or just leave our seats on the board of directors.’

Egypt, Telecom Egypt, Vodafone Egypt