* Rejection opens way for international operators

* Thursday was deadline for companies to accept offer

* Vodafone Egypt says spectrum insufficient

(Adds Vodafone statement, analyst comment, background)

By Ola Noureldin

CAIRO, Sept 22 (Reuters) - All three of Egypt's established mobile phone operators declined to buy fourth-generation (4G) service licences, two Egyptian telecoms officials told Reuters on Thursday, paving the way for international operators to enter the local market.

The government is selling four 4G licences as part of a long-awaited plan to reform the telecoms sector. It gave companies operating in Egypt priority but said it would launch an international tender should any of them decline the offer.

Vodafone Egypt VODE.CA said on Thursday it had rejected that offer because it did not give sufficient spectrum to operate the services efficiently.

Orange EMOB.CA and Etisalat ETELZS.UL had also declined the offer, the two officials said.

That leaves the way open for Kuwaiti mobile operator Zain ZAIN.KW , China Telecom 0728.HK , Saudi Telecom 7030.SE and Lebara KSA, which had all expressed an interest in acquiring Egyptian 4G licences if the established companies bowed out.

Vodafone Egypt said the current terms and conditions of the 4G licence "do not serve the interests of the Egyptian citizen".

Sources told Reuters last month Vodafone, Orange and Etisalat had also objected to licence terms requiring 50 percent of licence payments be made in U.S. dollars.

Orange and Etisalat did not respond to repeated requests for comment. The Egyptian officials declined to be named as no official announcement has been made.

Telecom Egypt, the country's fixed-line monopoly, acquired its 4G licence for 7.08 billion Egyptian pounds ($797 million) last month, allowing it to enter the mobile phone market directly for the first time.

A senior Telecoms Ministry official told Reuters in August revised terms included additional frequencies but no change to the licence payment conditions.

Egypt needs hard currency after burning through its foreign exchange reserves as political turmoil hit foreign investment and tourism since a 2011 uprising.

"(Operators) have dollar earnings that they will not want to let go of, dollar savings they have accumulated through roaming services. That's where the disagreement is," Allen Sandeep, head of research at NAEEM Brokerage said, adding that companies had been negotiating to pay in instalments.

Vodafone said on Thursday it would be ready to acquire a 4G licence if the terms and conditions could be revised to "encourage future investment in the development of Egypt's mobile industry".

(Additional reporting by Eric Knecht; Writing by Lin Noueihed and Ola Noureldin; Editing by Mark Potter and Susan Thomas) ((Ola.Noureldin@thomsonreuters.com;))