A Major Move in Telecom

Telecom Egypt has entered into a significant partnership with 4iG Group, a Hungarian IT solutions company, through a memorandum of understanding (MoU). This joint venture aims to develop a cutting-edge fibre network, promising high-speed internet access for six million households.

Investment and Objectives

The project, set to attract a substantial investment of $600 million over the next decade, focuses on establishing, managing, and marketing a fibre-optic infrastructure dedicated to wholesale operations within Egypt. This infrastructure will facilitate high-speed internet connections directly to homes (FTTH) and businesses (FTTS).

Formalizing the Partnership

The MoU was signed during the Egypt-EU Investment Conference in Cairo, held from June 29 to 30. In the coming months, Telecom Egypt and 4iG Group will collaborate to finalize the details of the joint venture, including the business model, ownership structure, governance procedures, and technological foundations.

Alignment with Digital Egypt Strategy

This strategic partnership aligns with Telecom Egypt's broader efforts to expand FTTH networks as part of the "Digital Egypt" strategy. This initiative is a key component of the broader Egypt Vision 2030, aiming to transform Egypt into a digital society. The integration of mobile sites with the new fibre infrastructure is also expected to enhance mobile network performance, catering to the growing demand for data and paving the way for extensive 5G rollouts.

Pioneering 5G in Egypt

In a significant milestone earlier in January 2024, Telecom Egypt became the first telecommunications company in Egypt to obtain a 5G license. The National Telecommunications Regulatory Authority (NTRA) granted the company a 15-year license at a cost of $150 million.

Leadership Perspectives

Mohamed Nasr, the Managing Director and CEO of Telecom Egypt, expressed optimism about the agreement. He highlighted that this collaboration will expedite Egypt’s digital transformation journey by leveraging a "future-ready network" that will not only bolster 5G deployment but also enhance next-generation services like the Internet of Things (IoT) and enterprise networks.

Gellért Jászai, Chairman of 4iG Group, recognized the joint venture as a significant opportunity to extend the group’s international presence, aligning with its strategic objectives for long-term growth. He emphasized that the collaboration aims to have a positive socio-economic impact, generating employment, developing a skilled workforce, supporting local businesses, and enhancing the quality of life for the Egyptian population.

Expanding Global Connectivity

In a related development in February 2024, Telecom Egypt and 4iG Group agreed to work on constructing a direct subsea cable connecting Albania to Egypt. This high-capacity digital bridge is expected to link Africa and Asia with Europe, potentially transforming the digital landscape of the regions involved.

Further Collaborations: ITIDA and Nokia

Additionally, the Information Technology Industry Development Agency (ITIDA) signed an MoU with Telecom Egypt and Nokia during the investment conference. This partnership aims to broaden Nokia's operational footprint in Egypt, boost its innovation capabilities, and enhance export services, further reinforcing Egypt’s position as a hub for technological advancement and digital innovation.