Telecom Egypt to Pay 6% of Revenues for MVNO License
Published on: 17th Apr 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
Egypt's state controlled landline operator Telecom Egypt is to pay 6% of the revenues from its soon to launch MVNO to the telecoms regulator as part of its license fee.
The revelation of the addition costs on top of the LE2.5 billion MVNO license fee were revealed by the head of the regulator, Hisham El-Alayleyi.
Telecom Egypt, which is 80% owned by the government, and also owns a 45% stake in Vodafone's local subsidiary is expected to launch its MVNO within the next few months.
It has also been given a year to resolve its stake in Vodafone, although the company has asked for two years, as that would then tie in with the planned LTE spectrum auction.
Both Telecom Egypt and Vodafone have expressed interests in buying out each other's stakes in the company, which could lead to interesting negotiations over the next 12-24 months.