Vodafone Secures Egyptian 3G Deal
January 26, 2007 - source: BWCS
Vodafone Egypt has agreed to pay EŁ3.34 billion (US$586 million) to the Egyptian government for a 15-year, third-generation, mobile phone licence. The deal comes despite many analysts questioning the immediate potential of 3G services in the country.
The UK-based global operator said it would also pay the government an annual fee which will be made up of 2.4% of all 3G revenues. The agreement follows lengthy negotiations with Egypt's National Telecom Regulatory Authority.
The high cost of the licence is largely attributed to the US$2.9 billion which Saudi operator Etisalat recently paid for permission to operate Egypt's third mobile network. At the time, the Egyptian telecoms regulator set the licence fee for 3G services at 20% of the total paid by Etisalat.
The regulator said Vodafone could start offering 3G services after Etisalat started its operations in Egypt. These are expected to begin by the end of the first quarter of this year.
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