"No final decision has been taken yet, but we are studying the matter carefully," Chairman Naguib Sawiris said.

The granting of a license for the third mobile network is expected in the fourth quarter of 2006.

Orascom bid for Saudi Arabia’s second mobile license but lost to the United Arab Emirates' state-run Emirates Telecommunications Corp. Saudi Telecommunications Co. (STC) is currently the country's only landline operator and one of two mobile operators. The second mobile operator is Etihad Etisalat Co. (Mobily).

Sawiris also said Orascom is considering increasing its stake in Hutchison Telecom International Ltd. A US$ 1.3 billion deal was reached in December 2005 in which Orascom purchased a 19.3% stake in Hutchison.

"We have the right to increase our share from 19.3% to 23% and we are studying this now," Sawiris said.

OTH operates in Algeria, Pakistan, Tunisia, Iraq, Bangladesh, Zimbabwe and Egypt.

Source: Dow Jones - WDR/Intelecon Regulatory News