Telecom Egypt, Hungary’s 4iG Group ink MoU to create $600mln fibre JV

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Telecom Egypt has entered into a memorandum of understanding (MoU) with the Hungarian IT leader 4iG Group to establish a joint venture (JV) aimed at constructing, operating, and commercialising fibre-to-the-home (FTTH) and fibre-to-the-site (FTTS) infrastructure for wholesale purposes in Egypt.

The JV is set to build a modern fibre network to give six million households access to a high-speed network, according to a press release.

The project will receive $600 million in investments over 10 years.

Over the coming months, 4iG Group and Telecom Egypt will agree on the business model, ownership structure, governance processes, and technological details of the JV.

Mohamed Nasr, Managing Director and CEO of Telecom Egypt, said: Through this agreement…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.”

Gellért Jászai, Chairman of 4iG Group, stated: “This collaboration is another opportunity for 4iG Group to market its expertise internationally in line with its long-term business strategy. We have found the best partner in Telecom Egypt for our ambition, just as we have in the already launched subsea cable project.”

“Through these partnerships, we aim to create jobs, build a skilled workforce that supports local enterprises, and improve the quality of life for Egyptians," Jászai added.

It is worth noting that the MoU was signed on the sidelines of the Egypt-EU Investment Conference in the presence of Egypt's Prime Minister Mostafa Madbouly and Minister of Communications Amr Talaat.

This partnership supports Telecom Egypt's plan to transform areas into FTTH networks under the “Digital Egypt” strategy, aligning with Egypt’s Vision 2030.

Additionally, connecting mobile sites with fibre infrastructure will enhance mobile networks to meet growing capacity demands and enable massive 5G rollouts.

During the Egypt-EU Investment Conference, Telecom Egypt also signed an MoU with Egypt’s Information Technology Industry Development Agency (ITIDA).

The EGX-listed company posted a consolidated net profit after tax and non-controlling interests of EGP 3.88 billion during the first quarter (Q1) of 2024, up from EGP 3.81 billion in Q1-23.