Telecom Egypt this week appointed a new chief executive and chairman, raising questions about the incumbent operator’s mobile strategy.
Reuters reported on Wednesday that Telecom Egypt, which is 80% state owned, has named Osama Yasin as its new CEO, and Mohamed Salem as its new chairman. The appointments were announced hours after the government named new representatives to Telecom Egypt’s board.
Yasin replaces Mohamed el-Nawawy, who took the helm in August 2012. The reason for his replacement is still unclear.
According to one analyst, replacing Telecom Egypt’s top management raises questions over when – or whether – the operator plans to roll out its own mobile network.
"The current management still seems interested in going forward with the mobile licence. With the new management in place we’ll have to wait and see," said Allen Sandeep, head of research at NAEEM Brokerage, in the Reuters report.
Telecom Egypt paid 2.5 billion Egyptian pounds (€260 million) for a unified licence in April 2014, paving the way for it to become a fully-fledged mobile operator. The government approved the licence in September. Until now, the company has offered mobile services via infrastructure operated by Vodafone Egypt, a company in which Telecom Egypt holds a 45% stake.
However, according to local newspaper Youm7, the licence has still not been activated because of an ongoing dispute between Telecom Egypt and local mobile operators regarding certain unspecified terms contained within said licence.
Furthermore, Telecom Egypt launching a standalone mobile operation raises conflict-of-interest concerns given its 45% stake in Vodafone Egypt.
