China Telecom said to be interested in Egypt 4G license

China Telecom has reportedly expressed an interest in expanding into Egypt through the acquisition of a 4G license in the market.

The operator, along with Saudi Telecom Company, have been in contact with the communications ministry regarding potentially securing licenses in Egypt, a ministry official told.

But neither operator has yet submitted a formal request, and 4G licenses will only be offered to new entrants if existing players reject the terms of the licenses, the report states.

Incumbent operators have reportedly been slow to accept the terms offered by the government for 4G licenses. In an example of these terms, Orange’s Egyptian affiliate has been asked to pay 3.54 billion Egyptian pounds ($398.6 million) for a license, and to decide whether to agree by August.

The fact that international operators are interested in acquiring licenses could increase pressure on the existing entrants to agree to the terms.

At least some analysts believe that all of Egypt’s existing players will ultimately apply for 4G licenses, which would mean the government would not have sufficient reason to approve the entry of a newcomer. It is therefore uncertain whether China Telecom will be entering the Egyptian market.