Telecom Egypt becomes the country’s first telco company to receive a 5G license

Egypt’s state-owned telecommunications company, Telecom Egypt, has become the country’s first mobile operator to secure a 5G license. The National Telecommunications Regulatory Authority (NTRA) granted the company a 15-year license, valued at $150 million, to operate 5G.

However, the license does not guarantee automatic renewal at the end of the agreement, nor does it offer additional benefits.

The announcement comes two months after the Egyptian government revealed plans to issue 5G licences. Telecom Egypt, which has been offering retail telecommunication services in the country for over half a century, reported a 48% net profit for the first nine months of 2023.

Having now obtained the 5G network licence, Telecom Egypt is set to roll out high-capacity, high-speed networks. 5G, or fifth-generation mobile communication networks, are high-end networks renowned for faster download and data speeds, as well as augmented network capacity, compared to the 4G network licensed by NTRA in 2016.

Amr Talaat, the Minister of Communications and Information Technology, claimed that Telecom Egypt stands to benefit from operating a 5G network. He believes this will enhance connectivity, enable control over more devices, and support Egypt’s digital transformation efforts, into which the company invested EGP 50 billion in 2022.

Telecom Egypt, prior to the approval of its 5G licence, announced a partnership with telecom wholesale company Zain Omantel International Company (ZOI). The collaboration aims to develop new digital infrastructure and establish a data transfer route connecting Europe, the Mediterranean Sea, and the Arabian Gulf via both terrestrial and submarine pathways.

In other updates, Telecom Egypt has announced a 30% price increase for its landline internet packages, effective from January 5th. Reports suggest that this increase follows earlier decisions made by telecommunication companies in Egypt to raise prices for mobile recharge packages.

Further reports imply that the National Telecommunications Regulatory Authority might endorse a decision to increase service prices as a means to incentivize operators to obtain 5G licenses.

The Information and Decision Support Centre (IDSC), a component of Egypt’s cabinet, has indicated that the country has been actively working towards the development and deployment of 5G networks and applications of artificial intelligence since 2021.

Furthermore, a study conducted in 2023 revealed that 41% of South Africa’s population had access to 5G networks, with 27 service providers launching 5G services across 16 African markets. By 2030, the ten African markets projected to lead in 5G technology are Morocco, Algeria, South Africa, Egypt, Nigeria, Sudan, Kenya, Ghana, Tanzania, and Ethiopia.