Only two bidders for Egyptian Triple Play licences
Egypt’s telecom regulator has received only two bids from consortia for the two new Triple Play licences. The licences are hedged around with restrictions and the process has been delayed. Egypt’s National Telecom Regulatory Authority has not disclosed the names of the companies involved in the consortia.
The regulator announced the bidding process in September last year, with offers due in January 2010 and successful bidders likely to start operating in the second half of 2010. The deadline was postponed to December.
According to the Egyptian government, the bidders will be spared an upfront payment when applying, but instead they would have to submit 8% of their revenues. This is a recognition that the financial value of the licences is not as great as initially thought.
The Egyptian regulator expects the awarding of licenses to generate a $1 billion investment over five years in the telecoms market. The two operators would compete with Telecom Egypt, if licensing is approved.