Egypt’s long-awaited step towards implementing 5G technology has finally taken place. Three major operators — Vodafone, E&, and Orange — received their 5G licenses, concluding a process marked by delays and uncertainties. This milestone was celebrated in a ceremony organized by the National Telecom Regulatory Authority (NTRA) under the oversight of Amr Talaat, Egypt’s Minister of Communications and IT.
The delayed licensing saga saw Telecom Egypt secure its 5G license earlier in the year for $150 million. In contrast, the other three operators collectively paid $525 million. A significant total of $675 million was settled for 15-year permits not only for 5G but also extending existing licenses for prior mobile technology generations.
Interestingly, Egypt’s licensing process resembled a refarming initiative rather than a typical frequency auction. This process involved reusing existing spectrum allocations rather than distributing new ones. Consequently, fees were calculated based on the existing spectrum holdings of each operator.
For their 5G deployment, operators are expected to utilize the 2.6-GHz TDD spectrum, a band currently designated for 5G worldwide and already used in Egypt for 4G. The existing distribution of this spectrum was established in 2020-2022, with E& and Telecom Egypt each holding two 10-MHz blocks, Vodafone two 20-MHz blocks, and Orange securing 30 MHz.
The operators’ choice of spectrum, whether it remains the 2.6-GHz or shifts to another band, remains to be confirmed. The opaqueness of Egypt’s licensing approach has left industry experts guessing much of the arrangements, raising concerns about transparency in the allocation process.
Egypt’s journey towards 5G began in 2019. Fast forward to late 2023, as rumours speculated license fees upwards of $500 million, Telecom Egypt discreetly secured its license for a comparatively lower sum. This silence further fueled speculations around the licensing conditions, casting doubts over the regulatory clarity.
With the licenses now finalized, NTRA has turned its focus to promoting the transformative potential of 5G. NTRA’s chief executive, Mohamed Shamroukh, emphasized how “launching 5G services in Egypt represents an important step to enhance the capabilities of the communications market,” aiming to provide “innovative solutions that meet the needs of various sectors and provide advanced user experiences.”
