Egyptian towers: regulatory snapshot

The Egyptian National Telecommunication Regulatory Authority (NTRA) published in 2010 “The Terms, Conditions & Specifications Required For the Award of Licenses for the Construction & Leasing of Wireless Communications Infrastructure,” which you can download here.

Summary of key points

Bidders for a license are required to “have previous suitable experience in constructing wireless communication towers on all levels” and be able to “demonstrate its adequate financial capability” including “audited financial statements for the last three (3) years”. Bidders are required to shared anticipated costs, pricing, financing and revenues, but there is no suggestion that the NTRA will intercede in matters of pricing.

Term and fees

License terms are for 15 years. An upfront royalty of 50,000 LE (~US$6,500 at time of writing) is payable, together “An Annual License Fee amounting to 3 % (only three percent) of gross service provision revenues on an annual basis for the licensed services under the scope of this license, amounting to a minimum of half a million Egyptian pounds annually” (~US$65,000). A further 10,000 LE (~US$10,000), plus inflation, is also payable annually. Finally a deposit of a further 500,000 LE (again, ~US$65,000) as a performance bond

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