State-owned operator, Telecom Egypt and Hungarian telecommunications company 4iG have signed a Memorandum of Understanding (MoU) to create a joint venture aimed at constructing and operating a fiber-to-the-home (FTTH) and fiber-to-the-site (FTTS) network across Egypt. The partnership will focus on delivering high-speed fiber connectivity to at least six million households on a wholesale basis.

The joint venture plans to invest approximately $600 million over the next decade to enhance Egypt’s fiber infrastructure. However, details regarding the business model, ownership structure, governance, and technology are yet to be finalized.

This collaboration is part of Telecom Egypt’s broader initiative to transition the entire country to FTTH networks, in alignment with the Ministry of Communications and Information Technology’s Digital Egypt Strategy. It also supports Egypt’s Vision 2030 and ‘Decent Life Initiative’, which aims to create a digitally advanced society and a robust digital economy. Egypt’s number of fixed broadband lines is expected to increase from 11.6 million in 2022 to 16.1 million in 2027.

Mohamed Nasr, Managing Director and CEO of Telecom Egypt, commented, “Through this agreement, which will capitalize on our respective strengths in the ICT industry, we will accelerate Egypt’s digital transformation thanks to the future-ready network that will ramp up 5G and many other next-generation services such as IoT and enterprise networks.”

Gellért Jászai, chairman of 4iG Group, added: “The combination of the strengths and expertise of the two major companies foresees the success of the Egyptian fiber network development program. It also ensures the application of the latest technologies and innovations, as well as the establishment of high-quality services across the country.”

The two companies previously collaborated on a subsea cable project connecting Albania to Egypt. The MoU for this project was signed in October last year, and it is currently underway, according to Jászai.