Vodafone Egypt Still Negotiating for 3G License

According to Vodafone Egypt's product program manager Karim Khalifa, Vodafone Egypt is currently still in talks for the acquisition of a 3G license although the mobile operator started negotiating with the National Telecommunication Regulatory Authority (NTRA), for the upgrading of its 2G license and the acquisition of a 3G operating license, since last year. According to the company's reports, there are currently over 600,000 3G capable mobile phones on the network.

"3G will be beneficial to our customers, as well as to attract new customers to our network," says Khalifa. "Each individual service and business case supports the positive forecast for usage stimulation and uptake of these 3G services."

The upgrade of the existing 2G network will bring benefits to both the existing customers and the future subscribers of Vodafone Egypt. Advantages include enhanced voice capability, the possibility to initiate video calls as well as high-speed wireless data access for corporate customers.

Although still in negotiations, apparently the 3G license will cost Vodafone Egypt around $578 million as well as $1 billion in license fees. A consortium led by United Arab Emirates telecom provider Etisalat was granted the third 3G license in Egypt in July 2006 in exchange for approximately $3 billion, the equivalent of 16.7 billion Egyptian pounds. The license allows the mobile operator to offer both 2G and 3G services and Etelisat is planning to launch a 2G network in the first quarter of 2007 while a 3G network is scheduled to be released until 2008.

While Etisalat was already awarded a 3G license and Vodafone Egypt is currently in talks with the National Telecommunication Regulatory Authority, Mobinil, the only other mobile operator in Egypt currently seems to be analyzing the possibility of a 3G license as well according to NTRA.