Restrictions deter bidders from Egypt’s triple-play licences

Despite earlier reports that at least 18 different parties had bought bid documents for the two triple-play licences being offered in Egypt, only two consortiums submitted bids to the country’s telecoms regulator by the deadline of April 15. It is believed that limitations in geographic range and dependency on landline operator Telecom Egypt are reasons that have discouraged further bidders.

“We have received two bids from consortiums and will study them technically and the NTRA board will make a decision sometime in May,” president of the National Telecom Regulatory Authority (NTRA) Amr Badawi commented. The names of the bidders were not disclosed.

The government said it plans to take eight per cent of operator revenue as a royalty. It also expects the licences to prompt investments of around US$1 billion over the next five years.