Egypt: $600 million investment announced in optical fiber
July 2nd 2024
Egyptian incumbent Telecom Egypt and Hungarian IT services provider 4iG Group plan to invest $600 million in fiber optic access infrastructure in Egypt over the next 10 years. The two companies signed a memorandum of understanding on Sunday, June 30, to establish a joint venture for this purpose. This was on the occasion of the Egypt-EU Investment Conference held in Cairo from June 29 to 30.
Over the coming months, 4iG Group and Telecom Egypt will agree on the business model, exact ownership structure, governance processes and technological details of the joint venture. The joint venture will build, operate and market a wholesale FTTH (Fiber-To-The-Home) and FTTS (Fiber-To-The-Site) access infrastructure with a capacity of at least 6 million homes.
This new MoU comes five months after 4iG Group and Telecom Egypt signed a cooperation agreement for their Egypt-Albania submarine fiber optic cable project unveiled in October 2023. These initiatives reflect Telecom Egypt’s ambition to strengthen its digital infrastructure and establish itself as a leader in a context of accelerated digital transformation.
“ Through this agreement, which will leverage our respective strengths in the ICT sector, we will accelerate Egypt’s digital transformation through the future-ready network for the future that will enhance 5G and many other next-generation services such as IoT and enterprise networks ,” said Mohamed Nasr, CEO of Telecom Egypt.
The partnership will also accelerate the government’s digital transformation ambitions, particularly by improving people’s access to broadband. Egypt had 81.2 million Internet subscriptions at the end of 2023, according to official data. The country also had 113.9 million telephone subscriptions (fixed and mobile).
Source: Agency EcoFin
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