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Vodafone Egypt pushes for 3G licence

By Vanessa Haarhoff, ITWeb African correspondent
Johannesburg, 18 Jan 2007

Mobile operator Vodafone Egypt is still in talks for the acquisition of a 3G licence, according to Karim Khalifa, product programme manager at Vodafone Egypt.

Detailed negotiations for Vodafone Egypt to upgrade its current 2G licence to a 3G operating licence started late last year.

Khalifa says Vodafone Egypt is negotiating with the Egyptian National Telecommunication Regulatory Authority (NTRA) for the acquisition of the 3G operating licence.

"3G will be beneficial to our customers, as well as to attract new customers to our network," says Khalifa. "Each individual service and business case supports the positive forecast for usage stimulation and uptake of these 3G services."

There are 600 000 3G-capable phones available on the Vodafone Egypt network, according to company reports.

3G will also offer corporate customers high-speed wireless data access, making it easy for them to work in a dynamic environment, he says. Existing and new 2G customers will also benefit as a result of 3G due to the enhanced voice capacity that 3G will provide, adds Khalifa.

Cost speculation

Khalifa says the licence fee is still being negotiated. However, Egyptian newspapers report Vodafone Egypt's licence upgrade will cost around $578 million, as well as $1 billion in licence fees.

In July 2006, UAE telecommunication operator Etisalat was granted a third mobile operating licence in Egypt. The licence allows the telecom operator to offer both 2G and 3G services and cost Etisalat around $2.9 billion, according to Iman Ibraye, an Etisalat spokesman.

The 3G licence was the first of its kind in the North African country, he says.

Mobinil, Egypt's only other mobile operator aside from Vodafone Egypt and Etisalat, is also said to be contemplating a 3G licence, according to the NTRA Web site.

Related story:
UAE telco wins $3bn Egyptian licence

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