The mobile telephony market in Egypt is gearing for unprecedented competition after Telecom Egypt announced a target of one million subscribers when it ventures into the lucrative market segment.
Telecom Egypt, the country’s fixed line monopoly, said it has embarked on a process to acquire a mobile operating license and expects to enter the market sometime this year.
The company is set to pay $356.4 million for the license after the Egyptian government amended the law to allow fixed-line operators to enter the mobile market and vice versa.
According to Telecom Egypt CEO Mohammed El Nawawy, the company has taken care in recent years to come up with well studied plans and carefully selected strategies to facilitate its entry into the mobile market.
“Going mobile for will allow our business to thrive as we target four per cent revenue growth this year,” he said.
Telecom Egypt will offer mobile services using the networks of the other three players in the market namely Mobinil and the local units of Etisalat and Vodafone. The company controls a 45 per cent stake in Vodafone Egypt.
The Egyptian mobile telephony market is already saturated with a penetration rate of 110 per cent. With a population of 86 million, mobile telephone subscription stands at 97 million.