The wide ranging wholesale agreements aim to kick start Vodafone Egypt’s 5G rollout
Telecom Egypt has signed several multi-year agreements, worth around EGP 30 billion ($609.7 million), to deliver a raft of infrastructure services to Vodafone Egypt as that operator prepares to rollout 5G. The partnership includes extending Telecom Egypt’s transmission services agreement with Vodafone Egypt until 2031, securing Vodafone Egypt’s current and future expansion. It also includes a four-year agreement for fiber connectivity to Vodafone Egypt’s mobile sites.
In addition, several other agreements have been signed for virtual fixed voice and internet services, enabling Vodafone Egypt to expand its integrated portfolio of communications services in the Egyptian market and benefit from a range of distinctive value-added services and competitive business offerings.
The agreements will be disbursed over the duration of the agreements, which have varying maturities up to 2034. Vodafone Egypt, which is Telecom Egypt’s largest wholesale customer, is the owner of the largest mobile market share in Egypt and received its 5G licence from the National Telecommunications Regulatory Authority (NTRA) last month, as did Orange Egypt and e& Egypt. The three spend around $675 million. Vodafone Egypt also extended its existing spectrum licences for five years, to 2039, for $17 million. Telecom Egypt got its 5G licence from the NTRA in January 2024 for $150 million.
In contrast to Ethiopia, Vodafone Egypt is currently a jewel in Vodacom’s crown. In the current reporting period, Vodafone Egypt delivered service revenue of ZAR 13 billion, contributing 22.1% to the group service revenue. Vodacom said service revenue was up 44.1% in local currency, accelerating marginally to 44.4% in the second quarter. The operator put this down to the success of Vodafone Cash a financial services platform based on M-PESA. In the first half, Vodafone Egypt hit 50 million customers and grew ARPU by 34.6%.
In June, Vodafone Egypt became the first service provider globally to deploy Ericsson’s triple-band Radio 4466, supporting Frequency Division Duplex (FDD) and Time Division Duplex (TDD) bands – using 1800MHz, 2100MHz FDD and 2600MHz TDD bands.
Haya Karima
Speaking at the signing ceremony, communications and ICT minister Dr Amr Talaat said the number of mobile towers has doubled in Egypt over the past five years, reaching over 36,000 towers nationwide. “Over the past two years, more than EGP 8.8 billion has been invested – equally shared between the four mobile operators and the National Telecommunications Regulatory Authority – to expand the network of mobile towers in the villages of the ‘Haya Karima’ initiative,” he said. “The mobile network coverage for all phases of this project is expected to be completed by the end of the first quarter of next year.”
Vodafone Egypt CEO Mohamed Abdallah said the deal has made the telco one of the largest infrastructure investors in the country. “This partnership reflects our commitment to leveraging the latest technological solutions that will enable us to provide high-quality services to our customers in Egypt,” he said. “It also underscores our efforts to continue investing in the development of network infrastructure and the deployment of high-speed fibre optics.”
“This is part of our ambitious vision, following our recent acquisition of the 5G services licence with an investment exceeding $150 million. We are now on the verge of a new phase and are fully equipped to offer the best services with the highest quality standards,” he said. “We are committed to achieving successive accomplishments that meet our customers’ expectations and support our vision of leading Egypt’s digital transformation, in line with Egypt’s Vision 2030.”
“Telecom Egypt remains steadfast in its commitment to advancing the telecommunications sector in Egypt, leveraging its technical expertise and state-of-the-art infrastructure to support this goal,” said Telecom Egypt managing director and CEO Mohamed Nasr. “We are committed to driving Egypt’s digital transformation and shaping a better future for telecommunications services, in line with the rapid global advancements in the telecommunications and information technology sector.”
Above, from left: Vodafone Egypt’s CEO Mohamed Abdallah, Egypt’s minister of communications Amr Talaat and Telecom Egypt’s MD and CEO Mohamed Nasr at the signing.