The National Telecommunication Regulatory Authority (NTRA) has approved the unified license system, representing the finest regulatory framework to implement its plan which will be to the benefit of users, investors and the ICT sector.
This comes in line with NTI Board of Directors approvals and the cabinet mandate to the Minister of Communications and Information Technology to finalize the unified license procedures, thus developing the ICT sector in Egypt.
The Unified License system allows integrating fixed and mobile services, as well as creating a national entity that permits investment and develops basic infrastructure, being the core for developing telecommunication services and knowing that Egypt is in dire need to develop the telecommunication market.
The ICT Minister Atef Helmy said that the unified license system aimed at overcoming obstacles and permitted companies to provide telecommunication services, thus help in adopting the equal opportunities principal and allow competition among companies in all services.
The unified license system would benefit users, the ICT sector and the state for it would increase the country’s revenues, provide job opportunities for youth, attract new foreign investments to the Egyptian market and improve Egypt’s status in the ICT international indicators, Helmy added.
He praised efforts exerted by NTRA since its Board of Directors’ decision in December 2013 to start regulatory procedures to issue a unified license for the four companies working in mobile and fixed networks, thus guaranteeing same rights and duties. The value of the licenses is to be identified in cooperation with an international expert company.
The Executive Director of NTRA Hesham El-Alaily said a tender was carried out and awarded to Detecon company which identified prices – according to international standards – as follows:
Phase I (integrating telecommunication services and creating an entity to develop the basic infrastructure) 2014 – 2015
1- Telecom Egypt has been asked to pay 2.5 billion Egyptian pounds for the mobile license it wants
2- To grant mobile operators licenses to provide fixed services through Telecom Egypt, the value of the license is 100 million Egyptian pounds
3- The national entity license will be of the value of 300 million Egyptian pounds, which will create and rent the basic infrastructure for telecommunication networks
The four companies have the right to share in this entity and the State will oversee the financial management. The entity will allow the creation of a basic infrastructure on the basis of sharing cost and fast implementation in building and developing the infrastructure that covers all areas of the country, thereby improving quality of service and delivering it in higher speeds and lower costs.
Phase II
1- New provisions to introduce the international portal services were identified which will offer the service to all subscribers, and to be activated in June 2016 as follows:
2- Vodafone Egypt: one billion and eight hundred millions, increase the percentage of return to 6 percent from 2.4 in all services
3- Mobinil: one billion and five hundred millions, increase the percentage of return to 6 percent from 2.4 in all services
1- Etisalat Egypt, already has the international portal, is currently limited to its customers paying 8 EGP for each subscriber in voice mail for fixed and mobile phones
2- 4G mobile broadband services licenses will be granted in June 2016 according to conditions proposed by NTRA then
Phase III (license clauses unity)
NTRA, during this phase, is to unify all regulatory and financial commitments for the four companies.
NTRA is working to finalize phase I procedures with companies, to be activated at the end of June 2014 leading to a major change and development to the ICT sector.
