In a surprise development, Telecom Egypt said it might buy a controlling stake in Vodafone’s local subsidiary when 4G spectrum is offered, according to a Bloomberg report.
Previous speculation had been that Vodafone Group was ready to buy Telecom Egypt’s 45 per cent stake in Vodafone Egypt, which would avoid a conflict of interest for the country’s fixed-line monopoly holder.
Telecom Egypt has already applied for an integrated licence, a concession that allows operators – for the first time in Egypt – to offer fixed and mobile services under one licence.
Integrated licences would also open the door for Egypt’s three main mobile operators – Etisalat, Orange and Vodafone – to offer fixed-line services.
Such a scenario would mean Telecom Egypt holding stakes in rival firms.
“Management may propose that we evolve with this asset and by evolve we mean being buyers or sellers,” Mohamed El-Nawawy, Telecom Egypt’s CEO, told Bloomberg.
Egypt’s 4G licences are expected to be awarded within 10-12 months, according to the report, while El-Nawawy said he expected integrated licences to be issued this year.
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