Telecom Egypt agrees to MVNO licensing conditions

Telecom Egypt has agreed to a government demand to pay EGP2.5 billion (USD355 million) for an MVNO licence and will enter into negotiations with the other mobile networks to secure the necessary wholesale access.

The company said in a statement that its "strong financial performance and positive cash position would allow it to pay the total telecom licence (TTL) fees without any external sources of finance.

It has long been expected that the wholesale agreement will be with Vodafone, as Telecom Egypt owns a 45 per cent stake in the local mobile network operator.

That stake may have to be sold though, if, as expected, Telecom Egypt bids to become a full mobile network operator when the government auctions 4G spectrum in 2016.