Two state-run network providers, China Telecom and Saudi Telecom, have shown interest in acquiring 4GB mobile phone licenses which are currently being offered by the Egyptian government. The two telecommunication giants will be joining Kuwait's Zain, which made a similar request last week.

Both China Telecom and Saudi Telecom are yet to officially present their respective formal requests to the Egyptian government. Currently, Egypt has a handful of local mobile operators like Vodafone, Orage, and Etisalat, according to Telecom Paper. The impending entry of China Telecom and Saudi Telecom into the scene would put more pressure on these local players to accept license terms set by the Egyptian government.

Like Us on Facebook

It appears that these 4G licenses will be offered to new market players if the current mobile operators decide to reject the permits. Egypt's Communications Ministry claims that the country has about 95 million mobile subscribers.

Orange's local affiliate in Egypt was asked to pay $399 million should they agree with the terms offered by the Egyptian government.

China Securities International head of research Steven Liu said that by expanding to Egypt and acquiring the 4G license to operate in the country, China Telecom would broaden its revenue stream.

"Overseas revenue mainly comes from roaming and is almost negligible. If they were to acquire 4G licenses, it would be more of the goal to establish a presence than to compete toe-to-toe with European operators," Liu told Bloomberg.

Many market analysts predict that China Telecom's revenue for this year will be around $57 billion, an increase of about 4.9 percent from last year.

Tagschina telecom, Saudi Telecom, Egypt, 4G, Egypt 4G license, 4G license