Despite some restrictions and censorship, which culminated in the 2011 political and social unrest, Egypt is of the majority developed Internet markets in Africa in terms of users, international bandwidth and services offered. The country was again ranked fourth part African nations in the ‘Networked Readiness Index’ of the Davos World Economic Forum’s 2010/11 World Data Technology Statement. It is well connected through national and international fibre infrastructure and of Africa’s first Fibre-to-the-Home (FttH) deployments. Egypt as well has some of the lowest prices for DSL services on the continent, the result of a highly competitive sector with additional than 150 Internet and data service providers.

The strongest increase is currently seen in mobile broadband services, which offers the network operators – Mobinil (backed by Orascom and France Telecom), Vodafone Egypt (VFE) and Etisalat – new revenue streams in an environment of falling average revenue per user (ARPU). Amount three have as well acquired controlling stakes in leading data and Internet service providers.

Egypt became of the first nations in Africa to launch 3G mobile services, following the award of the country’s third mobile licence in 2006. The record price that was paid for the licence indicated the potential that is seen in the Egyptian mobile market, and the penetration rate has indeed multiplied since then and broke the 100% barrier in 2011. A fourth mobile licence is not planned before 2013.

Egypt as well has the major fixed-line market in Africa and the Arab region, with a highly profitable incumbent telco (Telecom Egypt) which was partially privatised through an IPO. A second national fixed-line licence tendered in 2009 received strong interest from international bidders, but the process has been postponed to at least 2013. Instead regionally limited triple-play licences for fixed-line voice, high-speed broadband and pay-TV services were issued in 2010. Efforts are underway to roll out next-generation networks, offering converged IP-based voice, data and entertainment services.

Market highlights:

• Mobile penetration has broken the 100% barrier;
• Decline in fixed-line subscriptions continues;
• Mobile ARPU continues to fall;
• Some of the lowest broadband and mobile tariffs in Africa;
• Additional than 100% annual increase in mobile broadband subscriptions;
• New mobile or fixed-line licences not expected before 2013.

Estimated market penetration rates in Egypt’s telecoms sector – end-2012

(Source: BuddeComm based on various sources)

Internet and Broadband Market

Despite some restrictions and censorship, which culminated in the 2011 political and social unrest, Egypt is of the majority developed Internet markets in Africa in terms of users, international bandwidth and services offered. The country was again ranked fourth part African nations in the ‘Networked Readiness Index’ of the Davos World Economic Forum’s 2010/11 World Data Technology Statement. It is well connected through national and international fibre infrastructure and has some of the lowest prices for DSL services on the continent, the result of a highly competitive sector with additional than 150 Internet and data service providers. Egypt’s three mobile network operators have entered the market with third generation (3G) mobile broadband services, and each of them holds a controlling stake in a leading data and Internet service provider.

Regulatory and Fixed-Line Telecoms

Egypt has the major fixed-line market in Africa and the Arab region, with a highly profitable incumbent telco (Telecom Egypt) which was partially privatised through an IPO. A second national fixed-line licence tendered in 2009 received strong interest from international bidders, but the process has been postponed to at least 2013. Instead regionally limited triple-play licences for fixed-line voice, high-speed broadband and pay-TV services were issued in 2010. Efforts are underway to roll out next-generation networks, offering converged IP-based voice, data and entertainment services. Egypt is well connected by several international submarine fibre optic cables, a national fibre backbone, and of Africa’s first Fibre-to-the-Home (FttH) deployments.

Mobile Market

Egypt became of the first nations in Africa to launch third generation (3G) mobile services in 2007, following the award of the country’s third mobile licence the previous year. The record price that was paid for the licence indicated the potential that is seen in the Egyptian mobile market, and the penetration rate has indeed multiplied since and broke the 100% barrier in 2011. The strongest increase is currently seen in mobile broadband services, which offers the network operators – Mobinil (backed by Orascom and France Telecom), Vodafone Egypt and Etisalat – new revenue streams in an environment of falling average revenue per user (ARPU). A fourth mobile licence is not planned before 2013.