Egypt’s National Telecom Regulatory Authority (NTRA) has again postponed the deadline for the submission of proposals for the award of the country’s second fixed line licence to September 18 instead of July 29.

Telecom Egypt is currently the country’s sole fixed-line operator with over 11.3 million subscribers

The NTRA described the decision to extend the deadline again was based on an attempt to give more time for NTRA officials to set the bases for the interconnection agreement between the second fixed provider and the mobile network operators in the light of the latest discounts of the fixed tariffs. The fluctuation witnessed in the foreign exchange markets is another factor that urged the postponement decision.

The bid deadline had already previously been postponed from June 19 to July 29, and in May the regulator stated that 12 local and international companies had purchased the licence specifications and conditions booklet for US$10,000 and submitted an auction guarantee of EGP 10 million (US$1.9 million).

Confirmed parties included Atheeb from Saudi Arabia, Orascom Telecom, Egypt’s Alkan Telecom and Giza Systems, Etisalat, France Telecom, Alcatel-Lucent Egypt and Kuwaiti investment firm Noor Financial Company.

Local media reports suggested equipment supplier Ericsson and two Gulf Arab telecoms firms had also bought the conditions booklet.

Consortia that apply to participate in the award process are required to have a base of at least 500,000 subscribers and minimum revenues of US$500 million a year, the NTRA advised.

Ericsson has beaten off stiff competition from Huawei and Cisco to win the first phase of the communications contract for King Abdullah Economic City (KAEC), sources close to the contract award have told Comm. KAEC is one of Saudi Arabia’s most ambitious development projects to date.

Earlier this month Emaar, the Tadawul-listed company developing KAEC, celebrated the achievement of SAR1 billion (US$267 million) from sales of residential units within the first phase of the mega-project.

The contract, estimated to be worth US$25 million, covers the development and implementation of a metropolitan telecommunications network, and the first phase of network infrastructure development was widely expected to be won by Cisco Systems. The US IP network provider had signed a memorandum of understanding with Emaar, the developer of KAEC, as recently as January to undertake the design of the city’s network infrastructure.

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Nawras, Oman’s second mobile operator, announced today a new Omani chairman to the board, replacing a retiring Qatari member.

Incoming chairman His Excellency Sheikh Salim bin Mostahail Al-Mashani is an advisor at the Royal Diwan, and also a prominent businessman and public figure.

Influential Omani H.E. Sheikh Salim bin Mostahail Al-Mashani is the newest addition to the Nawras board.

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Zain Group’s quarterly net profit reached US$281 million at end-June, a quarter-on-quarter increase of 3.9 per cent in dollar terms, but a 3.6 per cent quarterly decline in Kuwaiti dinars.

The dinar has appreciated by nine per cent to the dollar since Kuwait dropped the dollar peg in May 2007.

Zain CEO Saad Al-Barrak said the upcoming US$4.4 billion capital raising exercise will assist the company’s expansion strategy.

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Saudi Telecom (STC) confirmed yesterday it is keen to acquire a 25 per cent stake in Omantel. The shareholding is being sold as part of a privatisation programme initiated by the Omani government, the value of which has been estimated at US$1.1 billion.

Omantel’s privatisation started earlier this month with the ministry of finance soliciting expressions of interest by July 18, with the partial sale expected to be completed by the fourth quarter of this year.

If STC acquires a 25 stake in Omantel, it will be the Saudi operator’s fourth acquisition after Oger Telecom, Malaysia’s Maxis and Kuwait’s third mobile operator.

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