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Qualifying, Quantifying and Meeting the Challenge of Internet Costs

Qualifying, Quantifying and Meeting the Challenge of Internet Costs. Dr. Olfat Abd El Monsef NTRA. Policy. Regulatory environment &Infrastructure Development Universal Access ICT National Initiatives The Future. Regulatory environment &Infrastructure Development.

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Qualifying, Quantifying and Meeting the Challenge of Internet Costs

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  1. Qualifying, Quantifying and Meeting the Challenge of Internet Costs Dr. Olfat Abd El Monsef NTRA

  2. Policy • Regulatory environment &Infrastructure Development • Universal Access • ICT National Initiatives • The Future

  3. Regulatory environment &Infrastructure Development • Liberalization of Telecom Sector • PPP • Present Status • Fixed Network • Mobile Operators • Internet and Data Service Providers • International Gateways and Cables Landing

  4. Universal Access • Universal Service Programs Objective: • Coverage of remote and underserved areas • Increase penetration for covered areas • Public access, payphones, telecenters • Affordable Access

  5. ICT National Initiatives • Free Internet Initiative • PC to Every Home • IT Clubs • Broadband Initiative

  6. Free Internet Initiative: • Objective: Introduction, awareness & availability of the Internet nationwide, paving the road for broadband nationwide. • Date: Launch Jan. 2002

  7. Free Internet Initiative: • Model: • Subscription-Free Internet Services: Every Phone Owner is Eligible • Cost of Local Phone Calls (1.23 EGP/hr ~ 0.2 $ per hour) • Special Numbering Prefix 0777-0707 • Public Private Partnership: MCIT and TRA with Telecom Egypt and Local Private-Sector ISPs • Bill Collected with Regular Phone Bills • Offloading / revenue-sharing mechanism • Increased Competition: ImprovedQoS - Reduced Costs - Utilization Growth

  8. PC for every home • Objective: Affordable High-Quality Local-Brand PCs • Date: December 2002 • Phase II Egypt 2010 - Nation Online Initiative

  9. PC for every home • Model: • Public Private Partnership: MCIT – Telecom Egypt – Misr Bank –Local private sector Companies • Every Phone Owner is Eligible • Paid on Monthly Installments with Phone Bills ($15 – 20$ models) financed by the banking sector • Suppliers Accredited and Samples Approved by MCIT • Market stimulation arises interest in Local Manufacturing

  10. IT Clubs: • Objective: Introduction, awareness & availability of the Internet nationwide in least developed areas. • Date: Started 2002 • Model: PPP

  11. Broadband Initiative: • Objective: increasing broadband penetration and promoting higher speeds connections paving the road for e-content market and to Egypt's information society • Date: Launched May 2004

  12. Broadband Initiative: • Model: • Partial Local loop unbundling (line sharing) Q2 2002 yet very low numbers of BB subscribers • Public-Private-Partnership: MCIT and TRA with Telecom Egypt and Local Private-Sector ISPs • Price reduction, effective rollout and effective end-user installation in addition to a nationwide brandless marketing campaign • Promoting ADSL higher speeds by getting their prices down (currently 256kbps -> EGP 95 – other limited packages that starts as low as 45 EGP)

  13. Present Status: • Internet users: ~ 7.7 millions • International BW: ~ 15 Gbps • ADSL subscribers: ~ 355 Thousands • PC sales within the initiative: ~ 155 Thousands • IT Clubs: ~ 1550 nationwide

  14. The Future: • Development of Local Content • Peering and Hosting • Convergence of Networks and Services • Effect of telecom-media convergence on penetration

  15. Thank You

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