CIT minister threatens international tender if MNOs don’t act: The National Telecommunications Regulatory Authority will tender 4G licenses with new terms and prices in USD to international mobile operators if domestic MNOs do not apply, CIT Minister Yasser El Kady told Al Shorouk. The ministry will not extend the 22 September deadline to receive bids from local players, he says, and Telecom Egypt is ready to acquire any 4G spectrum not taken by the MNOs. El Kady says a number of GCC-based and Asian operators have expressed interest. El Kady has had meetings with players including Kuwait’s Zain, Saudi’s STC and virtual operator Lebara KSA — and has gone out of his way to note that each is interested in bidding. NTRA chief Mostafa Abdel Wahed confirmed yesterday there are ongoing 4G license negotiations with GCC companies and says “we will continue procedures in anticipation of all options.”

Sources at the MNOs say, unlike Telecom Egypt, they were offered no instalment plans on the 4G licenses and are assessing whether the license terms are financially viable. As we had previously reported, Etisalat Misr and Orange Egypt are in talks with their parent companies to see whether head office can help with financing the payment, particularly the foreign-currency tranche. Telecom Egypt signed a 4G agreement last week worth EGP 7.08 bn, of which EGP 5.2 bn is paid in advance, with the balance due in equal installments over the next four years. Half of the total license cost will be paid in USD.

Meanwhile, the NTRA has prepared new regulations on the bundling of telecom service ahead of Telecom Egypt entering the market as an integrated mobile network operator, Al Borsa reports. Licensed service providers may offer bundled services (ie: fixed-line, mobile and ADSL) as long as they do not “harm the consumer or competitors” and no loss-leaders will be allowed: The bundle’s cost has to cover all of the costs associated with offering the service. NTRA has also said it will watch for evidence that service providers are abusing privileged data they may obtain by renting infrastructure to a competitor. The watchdog signaled concern that existing MNOs could trigger a price war to target TE and reiterated what is already law, MNOs cannot make it difficult for customers to switch providers and must respect number-portability for switchers.