Egypt looks set to see a fourth mobile phone services firm after the country's telecoms watchdog said it would begin taking tenders for a virtual network licence.

The National Telecommunication Regulatory Authority (NTRA) made the announcement at a Saturday meeting chaired by Mohamed Salem, Egypt's minister of communications and information technology.

A Mobile Virtual Network Operator (MVNO) licence allows a company to offer its own mobile services whilst using the infrastructure and network of an already existing mobile operator. 

The NTRA will form a committee and define the regulatory framework for the services within three months, the regulator said in statement on its website. The details will then be presented to telecom companies interested in the tender.

The MVNO license will grant the eventual owner the use of one of Egypt's three licensed mobile operators – Vodafone Egypt, Etisalat or Mobinil. The firm will essentially buy mobile services from the existing firm then resell them to customers.

The NTRA's decision comes after much debate in the Egyptian telecoms market.

State landline monopoly Telecom Egypt (TE) has announced its aim to obtain the licence to the chagrin of the country's three mobile operators.

The latter believe TE's potential to offer mobile services while being the only telecoms company with the right to establish landlines gives it an unfair advantage in the marketplace.