Egypt to have third telecom operator

Egypt's National Telecommunications Regulatory Authority (NTRA) has decided to open up the mobile telecommunications market to a third operator, the official MENA news agency reported Friday.

Within the coming few months the NTRA will seek international bids for the establishment and operation of the third mobile network which will offer third generation (3G) services, a NTRA statement was quoted as saying.

The bidder will be chosen early next year and the network will start operation by the middle of 2007, it added.

Egypt first decided to set up a third mobile company in 2002, but the plan was delayed for "the sharp decrease in the volume of local and international communications investments, shortage in liquidity as well as the non-feasibility of the project," according to Minister of Communications and IT Tareq Kamel.

The ministry has since resumed its decision for "changes in the telecommunications market and the improved investment climate" which has made foreign investors interested in setting up the third operator, Kamel said.

Some officials concerned said that the establishment of a third operator is important to regulate competition and avoid a market monopoly of MobiNil and Vodafone Egypt, the two standing mobile carriers.

However, they added that the third operator will not have the capability to compete with the other two companies before 2009 as they have been established for more than three years and have gained experience and a brand name in the Egyptian market.

Source: Xinhua