Vodafone Egypt sees market stagnant until 2012

Vodafone Egypt has ruled out any growth in revenues until year-end, even amidst strong subscriber acquisition, with the operator's subscriber base reaching 34 million by the end of June, Al Shorouk and Al Masry Al Youm newspapers reported.

CEO Hatem Dweidar predicts usage will pick up in early 2012 amidst Egypt's first free elections in decades. The gap between revenues and general spending on network development and maintenance is widening, which is happening at the same time as cuts in call rates, a decline in roaming services caused by the setback in tourism, heightened competition and near-market saturation, Dweidar explained in comments published in the papers.

Vodafone Egypt expects the Egyptian telecom market to improve from the beginning of 2012, as telecom services usage increases due to political campaigning for elections.

The company also said that no negotiations were underway with the Egyptian government on amendments to mobile licence terms. Concerning talks with state monopoly Telecom Egypt on a dispute over the quality of service it provides to Vodafone Egypt, the situation remains at a standstill, with no agreement reached yet.

Vodafone Egypt is also awaiting the approval of the Supreme Council of the Armed Forces (SCAF) to extend its fibre network, after having received the approval of the National Telecom Regulatory Authority (NTRA) two months ago, Al Mal newspaper reported.

Vodafone Egypt is still reviewing the investment cost of the project and is spotting designated areas for extending these networks. Vodafone Egypt has not yet decided on the telecom operators it would cooperate with to extend the fibre networks, according to Khaled Hegazy, Vodafone Egypt's External Relations Manager.