SAN FRANCISCO-A consortium in which AirTouch Communications Inc. holds a 30-percent interest won a nationwide cellular license in Egypt, expanding AirTouch’s reach into the Middle East for the first time, the company said.
The consortium, called Misrfone-meaning Egypt phone-expects to launch service using Global System for Mobile communications technology nine months after signing the license. Vodafone Group plc, a cellular operator based in the United Kingdom, also holds a 30-percent interest in Misrfone. The consortium bid a total of $516 million for the license, and AirTouch’s share is about $155 million, said the company.
Egypt currently has only one cellular operator, with a penetration rate of less than 1 percent. Only about 7 percent of the population has landline service. “We believe there’s strong growth potential in Egypt,” said Arun Sarin, president and chief operating officer of AirTouch.
“With only about 90,000 cellular subscribers out of a population of 62 million, and roughly 1.7 million people waiting to sign up for landline service, there is obviously pent-up demand for telecommunications.”
