Egypt's Telecom Egypt and the Hungarian telecoms group 4iG have signed a Memorandum of Understanding (MoU) to establish a joint venture to build, operate, and commercialise Fibre-To-The-Home (FTTH) and Fibre-To-The-Site (FTTS) fiber access infrastructure on a wholesale basis in Egypt. The joint investment aims to build a modern fiber network that provides at minimum around six million households access to a high-speed network, Telecom Egypt said in a joint statement on Monday.
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Investment and Future Plans
The agreement, inked in the presence of the Egyptian Prime Minister and the Minister of Communications and Information Technology, outlines plans to invest approximately USD 600 million over the next decade.
During the months following the signing of the MoU, 4iG Group and Telecom Egypt will agree on the business model, exact ownership structure, governance processes, and technological details of the joint venture, the official release said.
Telecom Egypt said this partnership aligns with its plan to transform all areas into FTTH networks in line with Egypt’s Vision 2030. Additionally, the mobile sites connected with fiber infrastructure will enable the mobile networks to cater to the growing demand for capacity, facilitating the deployment of massive 5G rollouts.
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Impact on Digital Transformation
"Through this agreement, which will capitalise on our respective strengths in the ICT industry, we will accelerate Egypt's digital transformation thanks to the future-ready network that will ramp up 5G and many other next-generation services such as IoT and enterprise networks," Telecom Egypt said, noting that the country’s internet speeds have increased ten-fold in the past six years.
4iG Group added, "This collaboration is another opportunity for 4iG Group to market its expertise internationally in line with its long-term business strategy."
