Telecom Egypt (TE) has begun its preparations for entering the mobile market. The company has intensified its marketing efforts to highlight its new brand, in addition to negotiating with mobile manufacturers to supply it with devices to meet the needs of its future customers.
A source at Telecom Egypt said the company was negotiating with a number of mobile phone manufacturers and importers to supply the company with mobile devices as the company approached to launch its services as the fourth operator of mobile services in the Egyptian market.
He added that the company is negotiating with a number of companies to provide mobile phones at reduced prices in the form of bundles, giving the clients phones and simcards with free minutes and internet allowance.
Director of Sico for Mobile Phones, Mohamed Salem, said that negotiations with TE are still ongoing to provide the company with 4G ready devices, expecting a final agreement within the coming months.
The first Egyptian mobile phone is expected to be manufactured by the end of this year at Sico factory in the technological park in Assiut in partnership with the Chinese Megan.
The plant’s production capacity is expected to reach 6,000 devices per day during the first year of operation through two production lines and one packaging line. The capacity will be lifted to 12,000 devices per day in 2019.
The factory will produce smartphones and tablets for the Egyptian market, as well as the Gulf and Latin America. The company also aims to offer shares on the Egyptian Exchange (EGX) to finance its future expansion plans, after manufacturing begins.
An official at Samsung also said that the company is in negotiations with TE to provide mobile phones at discounted prices. He noted that TE was asking for technical amendments in the phones to match TE’s mobile network, so the Samsung Egypt has addressed the Korean mother company to discuss means of cooperation.
Meanwhile, Telecom Egypt used cars roaming the republic’s cities and the north coast carrying the company’s new logo for public marketing before inaugurating the mobile service by the end of the year and turning into an integrated operator.
Telecom Egypt has signed a local roaming agreement with Etisalat Egypt. Ahmed Behiry, CEO and Managing Director, said previously that his company has reached the best formula for the price of minute and MB with Etisalat, while the roaming services will be provided in cooperation with Orange.
The agreement allows TE to offer mobile services over Etisalat nationwide telecommunications network.
Local roaming means that Telecom Egypt will purchase minutes of calls and data units from the three mobile operators operating in the local market during the period in which the company is building its own 4G networks.