By Michael Georgy and Yasmine Saleh
CAIRO, Nov 13 (Reuters) - Landline monopoly Telecom Egypt is confident the government will grant it a licence toprovide mobile services by the end of the year, its chiefexecutive said on Wednesday.
"We see a reason to be confident that such a licence wouldbe issued within 2013," CEO Mohamed el-Nawawy told Reuters afterthird-quarter results were announced.
He said the company, which currently serves 35 millioncustomers living in seven million homes, would be able to offerservices one to two months after receiving the licence.
"We think that as early as the second quarter of next yearsome mobile revenue can be booked," said Nawawy.
The company reported a 16 percent increase in revenue and a2.3 percent rise in net profit in the third quarter comparedwith the same period last year.
Telecom Egypt, of which the government owns 80 percent,posted net profit of 650 million Egyptian pounds ($94.4 million)and revenue of 2.86 billion.
Its earnings before interest, taxes, depreciation andamortization (EBITDA) reached 1.131 billion pounds.
Egypt has three mobile operators: Vodafone Egypt,Mobinil, which is controlled by France Telecom, and Dubai-based Etisalat.
Telecom Egypt has been relying on its data business to boostrevenue and has been waiting to launch a new mobile operationthat would complement its existing joint venture with Vodafone and rival the sector's two other players.
Last December, the industry regulator said Egypt would grantTelecom Egypt a licence by mid-2013 to provide mobile servicesand would later let mobile companies offer fixed-lined servicesusing Telecom Egypt's infrastructure.
"VERY BULLISH"
The growth of those businesses is steadily eating away atTelecom Egypt's traditional fixed-line services as Egyptians optto use mobile phones and the internet instead, forcing thecompany to seek ways of expanding its exposure to mobile.
Egypt's economy has been hammered by political turmoil sincea popular uprising toppled veteran leader Hosni Mubarak in 2011.
In July, the army ousted President Mohamed Mursi of theMuslim Brotherhood after mass protests against his rule. Thattriggered more unrest, with security forces cracking down hardon Mursi's supporters.
Hundreds were killed and more than 2,000 arrested.
Asked if he was concerned by Egypt's political upheaval,Nawawy said: "Quite frankly we see a country with the heritageand the history of always being able to get its act together."
"Based on the geography and the history and the market I amvery bullish and very excited about Egypt and the opportunity inEgypt," he added.
Telecom Egypt owns a 45 percent stake in Vodafone Egypt andthe Egyptian authorities have previously said Telecom Egypt mustpull out of the venture before pushing ahead with any mobileoperations' plans.
Nawawy gave no indication that would happen, saying neitherthe authorities nor Vodafone had requested such a move.
Vodafone (VOD)
