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Monday, 30 May 2016

Regulator considers allowing TE to use 2G, 3G, and 4G networks of competitors in exchange for fixed-line usage

The framework being considered by regulators for 4G licenses will apparently allow Telecom Egypt (TE) to use the 2G and 3G networks of all three telecom operators in addition to their 4G networks, a senior source from the National Telecommunications Regulatory Authority (NTRA) tells Al Borsa. In exchange, Vodafone Egypt, Orange Egypt and Etisalat Misr will be allowed to rent TE’s fixed-line network and infrastructure, an arrangement eerily similar to the defunct unified operator license promoted by government in 2013. This comes as the three mobile operators are studying the possibility of amending their agreements to rent fiber-optic infrastructure from Telecom Egypt (TE) ahead of launching 4G services, Al Mal reported. The amendments include charging the mobile operators the cost of renting infrastructure, but exempting them from the cost of the dark fiber network, sources told Al Mal.

The news comes as Telecom Egypt (TE) is reportedly in talks to borrow EGP 5 bn from state-owned banks to finance its plans to acquire a 4G licence, sources told Al Shorouk. National Bank of Egypt is reportedly forming a syndicate to assess TE’s financial requirements and provide the funding. CIT Minister Yasser El Kady had noted that TE stressed it has the means to pay for the prospective 4G licence.

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