New GSM operator in Egypt

[Effendi]

Telecom Egypt,Telecom Italia To Bid For Mobile License

CAIRO -(Dow Jones)- State-controlled Telecom Egypt, Tuesday said it would join forces with Telecom Italia to bid for Egypt's third mobile telecommunications license.

A Telecom Egypt statement said the parties agreed Telecom Egypt would own a majority stake in the consortium.

The government sale of a third mobile license will allow a new entrant into an Egyptian market dominated by MobiNil - owned by Egypt's Orascom Telecom Holding and France Telecom - and Vodafone Group.

The deadline for bids is Thursday.

Egypt's telecom regulator last month said it expected a minimum of 2.5 billion Egyptian pounds ($433.8 million) to be offered in the tender.

Telecom Italia previously cooperated with Telecom Egypt in 2004 when it agreed a deal that enabled the Egyptian company to offer Internet protocol services to its clients.