Egypt's state-owned Telecom Egypt (TE) has signed a deal to buy a fourth-generation (4G) mobile license to be the country's first provider of the service, government-run Ahram online website reported Wednesday.

The contract was signed by Egypt's telecom regulator, the National Telecommunications Regulatory Authority (NTRA) and TE on Wednesday in the presence of Egypt's Communications and Information Technology Minister Yasser Al-Qadi.

NTRA is offering licenses of the high-speed 4G mobile technology to the three companies currently offering mobile services, Orange Egypt, Vodafone Egypt, Etisalat and TE, which holds the landline monopoly, according to the report.

TE said in a statement on the stock exchange website that the 15-year license will cost the company 7.08 billion Egyptian pounds (1 U.S. dollar= 8.88 pounds) of which 5.2 billion pounds were paid in advance, half of which in dollars.

The Egyptian government says the introduction of the new technology aims to maximize revenues for the state coffers and improve the speed of services to mobile customers.

The landline monopoly owns a 45 percent stake in Vodafone Egypt but will now be able to provide mobile phone services itself within 6 months, following the introduction of mobile technology in Egypt, it added.

The company can pay 2 billion Egyptian pounds to renew the license for an extra five years when it runs out after 15 years.

Egypt is selling 4G licenses as part of a long-awaited scheme to reform the country's telecoms sector.

The reforms will also allow Egypt's three mobile operators to offer fixed-line telephone services for the first time.

Source : XINHUA