Amwal Al Ghad English - 2016-09-22 15:36:14
Egypt’s stocks fell Thursday as non-Arab foreign investors sell. Main index, EGX30 dropped 0.30 percent, to 7913.94 points.
Cairo's three established mobile phone operators have declined to buy fourth-generation (4G) service licences, two Egyptian telecoms officials told Reuters.
The only operator which had acquired the licence last month was Telecom Egypt (ETEL.CA), which jumped 2.2 percent on Thursday. The country's fixed-line monopoly will now enter the mobile phone market directly for the first time, giving it a distinctive edge over other operators in the industry.
"The main term in the licence creating the deadlock, in our view, is the dollar portion of the licence, presumably which the operators would find difficult to fulfil, while the government would be keen to receive the dollar payments in one go," said a note by Cairo's Naeem Brokerage.
Telecom Egypt had on August 31 paid 5.2 billion Egyptian pounds ($585.59 million) for the licence, 50 percent of which was paid in dollars. The rest will be paid over four years.
Analysts at Naeem Brokerage added that such an "impasse" between regulators and mobile operators could cause damage to the future prospects of their operations in the country, and open the door wider for other international players to acquire the licence. More»