Vodacom Egypt has secured additional spectrum as part of the Egyptian government’s investment programme.
Vodacom said in a statement on Monday that its Egyptian unit has secured 2 x 10mHz of 1,800mHz as part of the initial phase of the programme.
“The 1,800mHz spectrum will augment Vodafone Egypt’s leading spectrum position and support us capturing the significant latent data demand in the country,” the group said.
The group expects to report an intangible spectrum asset of about $350m for the spectrum acquisition, which represents the present value of a multiyear payment schedule, it said.
Earlier this month Egypt’s communications and IT ministry and the National Telecommunications Regulatory Authority announced a multiyear investment programme with the industry. The programme, which runs from this year until 2032, encompasses spectrum in the 1,800mHz and 3,500mHz bands and the renewal of 2,600mHz.
Vodacom said the associated financial liability for this spectrum is expected to be about $250m for the year to end-March 2026, with a $100m instalment to be paid in the 2026 financial year, before the year-end. The balance of the liability will be settled in three annual instalments.
It is envisaged that the next phase of the programme will commence in the 2028 financial year and conclude by 2032, Vodacom said. During this phase it is expected that a sizeable allocation of 3,500mHz spectrum will be released and the existing 2,600mHz will be renewed, it said.
Egypt has been a star performer for Vodacom, with the operation now accounting for almost a quarter of the group’s revenue.
Vodacom recently reported a strong third-quarter performance, boosted by sustained growth in Egypt and its international business.
Group revenue grew 11% to R43.9bn in the quarter to end-December and 11.7% on a normalised basis, which presents performance on a comparable basis.
Group service revenue grew 12.7%, with normalised growth of 13.6%.
The period benefited from sustained growth in Egypt and the international business, including a strong performance in the Democratic Republic of Congo, CEO Shameel Joosub said.
Of the total, Egypt grew service revenue by 39% to R9.5bn, with Egypt financial services revenue up 59.4%.
“Consistent network investment, including the roll-out of 5G services, underpinned healthy ARPU [average revenue per unit] growth and reinforced Egypt’s leadership in customer experience and digital innovation,” said the Vodacom boss.
Vodacom’s customer growth strategy has been boosted by the purchase of Vodafone Egypt in December 2022 for R42bn to access the market leader in the country, with a market share of more than 40% at the time. That unit now accounts for 54.2-million customers, the largest single market, a title that had been held by its home country, South Africa.
- With Mudiwa Gavaza.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.