Telecom Egypt is closer to acquiring a license that would allow the North African country’s monopoly fixed-line operator to provide mobile-phone services using an existing operator’s network, Bloomberg cited Naeem Brokerage as saying.
The license, by which the company would become a mobile virtual network operator, would help Telecom Egypt contain the impact of users switching to mobile phones, Naeem wrote in a research report after meeting with company officials last week.
Naeem, which has a “buy” recommendation on Telecom Egypt, expects to raise its current price estimate of 21.4 Egyptian pounds after the company reports fourth-quarter earnings. Cairo- based Telecom Egypt is “likely” to increase dividend payments, Naeem said.
