Vodafone Says Remains Committed To Egyptian Mobile Market

LONDON -(Dow Jones)- Vodafone Group, Tuesday said it remains committed to selling mobile telephony services in Egypt, despite growing competition in the area.

The comments follow news that Telecom Egypt plans to take an additional 24.4% stake in Vodafone Egypt, potentially giving it a 49.9% shareholding in the company if it is successful in its bid.

A spokesman for Vodafone told Dow Jones Newswires that the company had no plans to pull out of the Egyptian market, having recently announced its intentions to take a 51% share in Raya Telecommunications, a Middle-Eastern telephony company.

"It's a great market. We have already got a 50.1% share (in Vodafone Egypt) so whatever happens to the outstanding shares, nothing will affect our rights or control in the company," said the Vodafone spokesman.

Earlier Tuesday, Telecom Egypt said its investment committee had approved plans for the company to tender an offer for an additional stake of up to 24.4% in Vodafone Egypt at 100 Egyptian Pounds ($1=5.746), with a total deal value coming to EGP5.86 billion (about $1.02 billion).

In July Vodafone said it anticipated paying $578 million to upgrade its second-generation mobile license in Egypt to a 3G license. A Vodafone spokesman told Dow Jones Newswires in July that the sale of Egypt's third mobile license to Etisalat, for $2.89 billion meant Vodafone would have to pay $578 million to upgrade to a 3G license.

The Vodafone spokesman Tuesday said the company has indicated it plans to roll out 3G services in Egypt, but hasn't disclosed a timetable for doing so.

Ian Gray, chief executive of Vodafone Egypt, told Dow Jones Newswires last spring that Vodafone Egypt would consider applying for a 3G license when the government made its terms clear.

Company Web site: http://www.vodafone.com

-By Daniel Thomas, Dow Jones Newswires; +44-20-7842-9264; dan.thomas@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 19th September 2006