Vodafone Egypt loses out as NTRA revises 4G spectrum allocations

24 Oct 2016

Following the redistribution of 4G-suitable spectrum by the National Telecom Regulatory Authority (NTRA) among Egypt’s mobile operators, Vodafone Egypt appears to have lost out at the expense of its rival Orange Egypt. According to Daily News Egypt, as per the NTRA’s latest decision Orange Egypt and Etisalat Misr will each be allocated 10MHz of frequencies for the deployment of LTE-based services. While Etisalat Misr had been offered that amount of spectrum under the terms of the 4G licences that all three Egyptian cellcos opted not to apply for in September 2016, Orange Egypt had only been offered 7.5MHz. By comparison, in the latest spectrum distribution plan Vodafone Egypt will now only be given 5MHz of LTE-suitable frequencies, down from the 7.5MHz it had been offered under the earlier licensing terms.

The report also notes that in terms of the price paid for spectrum, the updated frequency allocations mean that Orange Egypt is now paying USD48.4 million per MHz, down by USD4.7 million per MHz compared to the earlier licence offer. By comparison, Vodafone Egypt will now pay USD67.0 million per MHz, a notable increase of USD13.9 million per MHz. Etisalat Misr will also pay a slightly higher rate, though nowhere near as great an increase as the one Vodafone is facing, with the former now looking at a charge of USD53.5 million per MHz, up from USD51.25 million per MHz previously.