CAIRO: Egyptian mobile operator Mobinil said on Wednesday it will apply for a third generation mobile phone license following months of hesitation on whether to proceed.
Market growth appears to have driven the move after the company said in April that it did not want to burden investors with the high costs of a 3G service. Chief Executive Alex Shalaby said in June Mobinil was likely to apply for a license, saying his firm had witnessed strong growth in the previous six months and would outgrow its allocated 2G spectrum sooner than was previously expected.
Mobinil s long-time competitor Vodafone Egypt acquired a 15-year 3G license for $586 million in January.
Etisalat of the United Arab Emirates entered the market in May as the newest competitor, also with a 3G license, putting pressure on Mobinil to act.
Shares in Mobinil closed 3 percent higher on Wednesday at a price of LE 197.
