Amwal Al Ghad English - 2013-11-13 09:25:12
Landline monopoly Telecom Egypt - TE (ETEL.CA) is confident the government will grant it a license to provide mobile services by the end of the year, its chief executive said on Wednesday.
"We see a reason to be confident that such a license would be issued within 2013," CEO Mohamed el-Nawawy told Reuters after third-quarter results were announced.
The company reported a 16 percent increase in revenue and a 2.3 percent rise in net profit in the third quarter compared with the same period last year.
Telecom Egypt, of which the government owns 80 percent, posted net profit of 650 million Egyptian pounds ($94.4 million) and revenue of 2.86 billion.
Its earnings before interest, taxes, depreciation and amortization (EBITDA) reached 1.131 billion pounds.
Egypt has three mobile operators: Vodafone Egypt, Mobinil, which is controlled by FranceTelecom , and Dubai-based Etisalat.
Telecom Egypt has been relying on its data business to boost revenue and has been waiting to launch a new mobile operation that would complement its existing joint venture with Vodafone and rival the sector's two other players.
Last December, the industry regulator said Egypt would grant Telecom Egypt a license by mid-2013 to provide mobile services and would later let mobile companies offer fixed-lined services using Telecom Egypt's infrastructure.
Egypt's economy has been hammered by political turmoil since a popular uprising toppled autocrat Hosni Mubarak in 2011.
In July, the army ousted President Mohamed Morsi of the Muslim Brotherhood after mass protests against his rule. That triggered more unrest, with security forces cracking down hard on Morsi's supporters.
Hundreds were killed and more than 2,000 arrested.
Asked if he was concerned by Egypt's political upheaval, Nawawy said: "Quite frankly we see a country with the heritage and the history of always being able to get its act together."
"Based on the geography and the history and the market I am very bullish and very excited about Egypt and the opportunity in Egypt." More»