Unified licence: Vodafone Group may consider international arbitration

CAIRO, EGYPT: Vodafone Group would consider international arbitration if Telecom Egypt is awarded a so-called "unified licence", according to Bloomberg. Such a licence would give the fixed-line incumbent the go-ahead to launch branded mobile services for the first time.

In an e-mail statement sent to the news agency, Vodafone said the Egyptian government should assess "all outstanding issues to ensure fair and equitable treatment across the industry".

A unified licence, allowing operators to offer both fixed and mobile services, would allow state-owned Telecom Egypt to piggy-back on mobile networks in exchange for giving access to its own fixed-line infrastructure. That access, though, is limited to Telecom Egypt's aged copper network. Vodafone argues this unfairly hands an advantage to the fixed-line operator.

And given the Egyptian incumbent also owns a 45 per cent stake in Vodafone Egypt, there is also a conflict-of-interest argument.

Cabinet approval for unified licences, according to Bloomberg sources, is expected within a few weeks.

"Vodafone looks forward to hearing the government's response to our concerns," according to the company statement, "in light of which we will assess what steps might be necessary to protect our shareholders' interests, including possible commencement of international arbitration proceedings."