UPDATE 1-Egypt to grant Telecom Egypt a mobile license

CAIRO, Dec 26 (Reuters) - Egypt will grant Telecom Egypt a license by mid-2013 to provide mobile services andwill later let mobile companies offer fixed-lined services usingTelecom Egypt's infrastructure, the industry regulator said. Landline monopoly Telecom Egypt, 80 percent owned by thestate, has been relying on its data business to boost revenue. "Telecom Egypt will be granted the right to offer mobiletelephone services," Amr Badawy, the executive chairman ofEgypt's telecom regulator, said in a statement on Wednesday,adding that the offer would be "executed by mid-2013". "Mobile companies will also be given the right to get alicense to offer fixed-lined services using the infrastructureof Telecom Egypt," he added without giving a timeframe. Egypt has three mobile operators: Vodafone Egypt,Mobinil, which is controlled by France Telecom, and Dubai-based Etisalat. Telecom Egypt Chief Executive Mohamed El-Nawawy told Reuterslast month that Telecom Egypt was in advanced talks with thegovernment on a deal that would allow it to offer mobileservices and added the company could look to set up its ownindependent network. Telecom Egypt last month said third-quarter revenue hadrisen 6 percent to 2.48 billion Egyptian pounds ($401.7million), against a Reuters forecast for 2.38 billion. ItsEBITDA margin of 36.8 percent was below a Reuters forecast for41 percent. The chairman and chief executive of France Telecom, StéphaneRichard, said last month Egypt's telecoms sector was crowded andcould not absorb another player, adding that he was seeking toexpand Mobinil services and hoped to get a 4G license soon.