CAIRO: Fixed-line monopoly Telecom Egypt has started rolling out fiber optic cable networks near Cairo to offer triple play services, the company said, after the government announced a telecoms tender.
The move by the state-owned group comes as Egypt prepares to open the sector to more competition by offering two combined cable television, telephone and internet licenses that could open the way to breaking Telecom Egypt s fixed-line monopoly.
The government tender for the licenses, expected to generate $1 billion over five years, comes as Telecom Egypt is already facing increased pressure from mobile operators trying to snatch away part of its market share for voice and data.
Telecom Egypt is adopting a new strategy to roll out fiber access networks in areas with demand for high speed broadband access that reaches 70 megabits/sec, Chief Executive Tarek Tantawy said in a statement on the company s website.
The company said it was launching its first fiber-to-the-home service in the Cairo suburb of Kattamia, and Telecom Egypt would continue to roll out fiber access networks for business and high end residential customers.
Telecom Egypt s move could set the stage for it to compete against any incoming triple play operators, who will initially be limited to working in Egypt s rapidly expanding new residential compounds in suburbs and satellite cities.
The new triple play operators are also likely to have to work with Telecom Egypt s existing infrastructure and the limited scope of the project, at least at first, could still leave Telecom Egypt s monopoly generally intact.
Regional mobile operator Orascom Telecom has said it would likely bid for one of the triple play licenses.
Others tipped to bid include the UAE s Etisalat, which already competes against Mobinil and Vodafone Egypt in Egypt s mobile market.
