Operators in Egypt moved one step closer to offering fixed and mobile services after the National Telecommunications Regulatory Authority (NTRA) agreed to issue the country’s first unified licences.

In a statement, NTRA said unified licences were an “optimal regulatory solution” and would “pave the way for the attainment of the growth and the balance required for the telecom market in Egypt”.

NTRA will now refer the details of its decision to the cabinet’s economic committee, which, in turn, will forward it on to the cabinet for ratification and final approval.

No timetable has been given for the licence awards and who will receive them.

The award of a unified licence will allow Telecom Egypt, the country’s largest fixed-line operator, to offer its own branded mobile services for the first time.

In light of the new licences, there has been speculation about the ownership of Vodafone Egypt, the country’s largest mobile operator in which Telecom Egypt holds a 45 per cent stake.

Should Telecom Egypt win a unified licence as expected, it would have a conflict of interest.

It was recently reported by Bloomberg that Telecom Egypt might buy a controlling stake in Vodafone’s local subsidiary when 4G spectrum comes up for auction (expected this year).

Another possibility – which seems more plausible if the regulator wants to encourage competition – is that Vodafone Group buys Telecom Egypt’s 45 per cent stake.

According to Q4 2013 figures from GSMA Intelligence, Vodafone Egypt has 42.9 million connections, followed by Orange (34.7 million) and Etisalat (26.6 million).