Egypts Telecommunications Minister Atef Helmy has said the long-awaited legislation will come into force in three months time, according to reports from local newspaper Ahram.
The new licence is expected to generate increased revenues for Telecom Egypt, which has seen its revenues decline as customers increasingly use the internet and mobile phones rather than fixed line phones.
In 2013, the company saw a 1.1 per cent fall in revenues from its fixed-line services and its home services subscribers fell from 6.24 million to 5.72 million.
Telecom Egypt does have some share of the mobile phone market through its stake in Vodafone Egypt.
The licence has been much anticipated, but has faced numerous delays due to political uncertainty following the removal of former president Mohamed Mursi last July.