Arab Finance: Telecom Egypt is considering activating part of its newly acquired spectrum as early as 2027, ahead of the timeline set in its licensing agreement, Al Borsa cited people familiar with the matter.

The plan aims to enhance the telecom operator’s capacity to accommodate the ongoing growth in internet and 5G usage, the sources added.

Meanwhile, the company is assessing the network's technical requirements to determine whether early deployment of the spectrum is necessary. This may entail a limited additional cost without altering the schedule of the main license installment payments, which begin in 2030.

This planned early activation is intended to expand network capacity and enhance service quality while supporting Telecom Egypt's broader strategy to invest in fiber-optic networks, data centers, and cloud services.

Regarding financial performance, the sources revealed that Vodafone Egypt's contribution to Telecom Egypt's profits rose to approximately EGP 3.7 billion during the first quarter (Q1) of 2026, representing a year-on-year (YoY) growth of 17%.

The EGX-listed company also continues to benefit from its foreign currency revenue streams, which account for roughly one-third of total revenue, amounting to between $650 million and $700 million annually, thanks to its subsea cable business and international connectivity services.

Despite recoding non-cash foreign exchange losses resulting from the revaluation of its US dollar-denominated liabilities, sources claimed that robust operating revenue, coupled with higher telecommunications and internet service tariffs, is expected to support Q2 results. They added that Telecom Egypt is on track to exceed its previously announced growth targets for 2026.

In Q1 2026, the group’s consolidated net profits reached EGP 3.572 billion, compared to EGP 4.645 billion in Q1 2025.