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16-Oct-2016

Orange Egypt formally requests renegotiation with telecom regulator regarding 4G licence

Orange Egypt has submitted a formal request to the National Telecommunication Regulatory Authority (NTRA) to renegotiate the 4G licence terms, according to a company statement. Orange Egypt will be allowed to offer the 4G service to its subscribers in return of USD484mn (EGP4.3bn), 50% of which will be paid in USD, and the balance will be paid in EGP, based on the exchange rate at the time of the payment, according to Al Borsa. Orange Egypt will get 10 MHz of 4G spectrum (instead of the previously offered 7.5MHz), and the licence financing (which will be in either USD or EUR) will come from the company’s parent, Orange Group. Moreover, Orange Egypt will also be allowed to offer fixed-line services virtually through Telecom Egypt’s (TE) [ETEL.CA] network for a total consideration of USD11.26mn (EGP100mn), 50% of which will be paid in USD, and the balance in EGP. Meanwhile, the international gateway licence will be priced entirely in USD. Vodafone Egypt (VFE) and Etisalat Misr have until 23 October to decide on the 4G licence, according to Mostafa Abdel Wahed, Deputy Head of NTRA. (Company disclosure, Al Borsa)

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