Telecom Egypt has recently signed a memorandum of understanding (MoU) with 4iG Group, a Hungarian IT solutions company, to create a joint venture (JV) with the ambitious goal of constructing a state-of-the-art fibre network. This network is expected to provide high-speed internet access to six million households.
The initiative is set to attract a substantial investment of $600 million over the next ten years. The primary objective of the project is to establish, manage, and market a fibre-optic infrastructure dedicated to wholesale operations within Egypt. The infrastructure will facilitate high-speed internet connections directly to homes (FTTH) and businesses (FTTS).
The MoU was formalized during the Egypt-EU Investment Conference, which took place in Cairo from June 29 to 30. Over the upcoming months, Telecom Egypt and 4iG Group will work together to iron out the specifics of the joint venture, including the business model, ownership structure, governance procedures, and the technological aspects that will underpin the venture.
This strategic partnership is in harmony with Telecom Egypt’s broader efforts to roll out FTTH networks across various regions as a key component of the “Digital Egypt” strategy. This strategy is a part of the broader Egypt Vision 2030, which aims to transform the country into a digital society. Additionally, the integration of mobile sites with the new fibre infrastructure is anticipated to enhance mobile network performance, catering to the growing demand for data and setting the stage for extensive 5G rollouts.
In a significant development earlier in January 2024, Telecom Egypt distinguished itself as the first telecommunications company in Egypt to obtain a 5G license. The National Telecommunications Regulatory Authority (NTRA) granted the company a 15-year license at a cost of $150 million.
Mohamed Nasr, the Managing Director and CEO of Telecom Egypt, conveyed his optimism regarding the agreement. He stated that this collaboration will expedite Egypt’s digital transformation journey, leveraging a “future-ready network” that will not only bolster the deployment of 5G but also enhance a variety of next-generation services, including the Internet of Things (IoT) and enterprise networks.
Gellért Jászai, the Chairman of 4iG Group, has recognized the joint venture with Telecom Egypt as a significant opportunity for the group to extend its international presence, which is in line with its strategic business objectives for long-term growth.
Jászai emphasized that the collaboration is not just about infrastructure development; it also aims to have a positive socio-economic impact. The partnership is expected to generate employment opportunities, foster the development of a skilled workforce, support local businesses, and ultimately enhance the quality of life for the Egyptian population.
In a related development that took place in February 2024, the two companies reached an agreement to work on the construction of a direct subsea cable that will connect Albania to Egypt. This cable is envisioned to create a high-capacity digital bridge that will link Africa and Asia with Europe, potentially transforming the digital landscape of the regions involved.
In addition to these developments, the Information Technology Industry Development Agency (ITIDA) also entered into a memorandum of understanding (MoU) with Telecom Egypt and Nokia during the investment conference. This MoU is geared towards broadening Nokia’s operational footprint in Egypt, as well as boosting the company’s innovation capabilities and export services. This partnership is another step towards reinforcing Egypt’s position as a hub for technological advancement and digital innovation.
