EGYPT – Telecom Egypt, Vodafone Egypt, Orange Egypt, and Etisalat Misr have obtained new telecom frequency spectra following the tender launched in October 2020 by the National Telecommunications Regulatory Authority (NTRA). The new frequencies are granted in the 2600 MHz band reserved for broadband.

The tender, which was held in two phases, saw in its first phase the acquisition by Telecom Egypt of the 2 × 10 MHz spectrum for US$305 million. Vodafone Egypt acquired the 2 x 20 MHz spectrum for US$540 million.

In the second phase, Orange Egypt and Etisalat Misr obtained a 2 x 10 MHz frequency spectrum respectively. The sale of these frequencies generated nearly US$1.1 billion.

The new telecom frequency spectra allocated to operators are based on the time-division duplexing (TDD) technology. This system allows the transmission and reception of the telecom signal in turn on the same frequency.

“The new frequencies are expected to spur mobile service providers to make new investments that will contribute to the development and modernization of mobile network infrastructure.”

Hossam El-Gamal – Executive chairman, NTRA

This solution maximizes the efficient use of the frequency spectrum in data transfers, in terms of speed and capacity, and contributes significantly to improving the quality of services provided to users.

Vodafone Group PLC acquired a ten-year license for 40 megahertz of 2.6 gigahertz TDD spectrum.

The telecommunication company said that payments will be phased over three years, with a first payment of US$270 million and two subsequent payments of US$135 million, due in 2021 and 2022 respectively.

The spectrum will enable Vodafone Egypt to significantly expand network capacity to meet growing demand, the company said.

In an internal memo the company said “This is an important milestone in our vision to build a digital Egypt in line with our focus for the next period on enhancing our customers’ experience. Along with creating a highly connected digital society where all Egyptians have access to a high-quality Internet connection.”

Vodafone was the market leader in the country in Q3, with a total of 40 million mobile connections excluding IoT, GSMA Intelligence estimated. Telecom Egypt ranked in fourth spot with 6.8 million connections.

Telecom Egypt acquired 20MHz in the band for US$305 million and a further 20MHz for US$325 million, also with ten-year licenses.

Telecom Egypt MD and CEO Adel Hamed pledged “an immediate and future positive impact on the company’s ability to reach the highest levels of service quality”, with the move also enabling it to cut service costs.

“We are very pleased with the approval of Telecom Egypt’s offer for additional spectrum, which will have an immediate and future positive impact on the company’s ability to reach the highest levels of service quality,” Adel Hamed, Telecom Egypt managing director and CEO said.

“This step will also lead to financial savings coming from cost reductions related to the services provided. Thanks to the new spectrum, Telecom Egypt will be able to accommodate the growing mobile customer base, which hit 6.7 million by the first half of 2020, and the associated hike in data services without compromising service quality, while providing the best value for money packages.”

According to Hossam El-Gamal, NTRA’s executive chairman, the new frequencies are expected to spur mobile service providers to make new investments that will contribute to the development and modernization of mobile network infrastructure. A way to improve the quality of communication services.

NTRA’s head Hossam El-Gamal said the move was part of the country’s strategy to support digital transformation: the regulator expects operators to raise the efficiency of their mobile infrastructure and the quality of communication services.

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