The long wait for the activation of Telecom Egypt’s unified service licence looks set to drag on, with Reuters reporting it will not be issued until next year.
State-owned Telecom Egypt paid 2.5 billion Egyptian pounds (€260 million) for a unified service licence in April 2014, paving the way for it to become a fully-fledged mobile operator. At the moment it offers mobile service via networks operated by Vodafone, a company in which Telecom Egypt holds a 45% stake.
The government approved Telecom Egypt’s unified licence in September; however, it has yet to be activated, according to local news outlet Youm7, due to an ongoing dispute between Telecom Egypt and local mobile operators regarding certain unspecified terms contained within said licence.
The fact that Telecom Egypt owns a large stake in Vodafone has also thrown up conflict-of-interest issues. Reports earlier this year claimed Telecom Egypt was working on a plan to sell exit Vodafone, but a sale has yet to materialise.
In addition, doubt over the future of Telecom Egypt’s unified licence was heaped on in late May when the company abruptly replaced its chief executive and chairman.
Despite these numerous issues, "it is expected … that the licence will be given to the company during 2016," said telecoms minister Khaled Ali Negm, in Wednesday’s Reuters report.
