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Internet Evolution in Egypt - Success Stories and Lessons Learned

Internet Evolution in Egypt - Success Stories and Lessons Learned. Baher Esmat Telecom Planning Manager Ministry of Communications and Information Technology - Egypt. Egyptian Information Society Initiative. Main Objectives

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Internet Evolution in Egypt - Success Stories and Lessons Learned

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  1. Internet Evolution in Egypt - Success Stories and Lessons Learned Baher Esmat Telecom Planning Manager Ministry of Communications and Information Technology - Egypt

  2. Egyptian Information Society Initiative Main Objectives • Develop the Egyptian society by raising the utilization of ICT in Egypt • Establish an export oriented ICT industry in the country

  3. Egyptian Information Society Initiative Main Elements E-Society E-Government E-Business E-Knowledge CIT Industry Development E-Readiness

  4. E-Readiness Initiatives • Public–Private Partnership in which the government articulates policy and regulatory frameworks for the private sector and civil society to implement for the benefit of the Egyptian citizen • Free Internet • PC for Every Home & Notebook for Every Specialist • IT Clubs • Broadband Access • E-Content

  5. Internet Evolution in Egypt • October 93: Internet birth with 2 main service providers • EUN serving the research and education sectors • IDSC serving the public and private sectors • March 96: Commercialization of Internet Services • 12 ISP’s emerged in 1996, increased to 45 in Q3 1999 • 1999 - 2000: Licensing of Internet Services • Licensing framework set and provided by the telecom regulator (NTRA) • Class A License for Backbone Providers • Class B License for PDN Operators • Class C License for ISP’s & Content Providers • Today there are 4 Class A providers, 4 Class B and more than 150 Class C’s

  6. Free Internet • Launched in January 2002 • Subscription-free Internet access • Cost of local phone calls (1.23 EGP per hour) • Special numbering prefix (0777xxxx & 0707xxxx) • Public–Private Partnership: MCIT and NTRA with TE and private ISP’s • TE shares its Internet calls revenues with operators (30% : 70%) • 1 million households are currently using Free Internet • Worth annual revenues of 200m EGP

  7. PC for Every Home & Notebook for Every Specialist • Launched in December 2002 • An affordable way for individuals and small businesses to acquire PC’s and laptops on monthly installments • Use TE’s phone bill as a collateral • Stimulate local assembling of PCs’ components • TE, 2 national banks and 23 Egyptian companies are contributing in the initiative • More than 105,000 PC’s have been sold so far

  8. IT Clubs • Provide computer training and Internet access in deprived areas • Established in youth centers, schools, colleges, NGO’s, cultural centers, etc… • The government provides the club with PC’s, LAN and Internet access whereas the club owner is responsible for furnishing the place • To date there are around 850 IT clubs all over Egypt with Internet access • Each club creates 2 -3 job opportunities

  9. Broadband Access • April 02: Local Loop Unbundling • TE allows licensed operators (A & B) to co-locate their DSLAM’s and offer ADSL services to end-users • Sluggish growth during the first couple of years (only 8,000 subscribers) • May 04: Broadband Initiative • Reduce Subscription Fees for ADSL access by 50% (150 EGP/month for 256kbps) • Facilitate installation and activation procedures • Intensify awareness and marketing campaigns • The initiative also addresses other issues such as broadband wireless access, convergence and Arabic content • Number of ADSL subscribers has grown from 8,000 in May 2004 to more than 58,000 to date

  10. Arabic E-Content • E-content in general is a key element for the success of any broadband business • Preserve Egypt’s wealth of Arabic content i.e. books, novels, movies, songs • Ensure Egypt’s leadership as a hub for culture and civilization • Provide the proper means for the e-content industry to pick up and flourish • Work closely with the private sector to develop the framework for sustainable business models

  11. Growth in Internet Subscribes

  12. Growth in ADSL Subscribers

  13. Growth in International Internet Bandwidth Capacity

  14. More Indicators • 9.9 million fixed telephone subscribers • 9.8 million mobile subscribers • 1,484 companies in IT and telecoms • 37,372 professionals in IT and telecoms • More than 6,000 annual professional trainees in IT and telecoms (22,318 trainees in 4 years) • Annual growth in the IT and telecom sector is around 13% • IT and telecoms represent 19% of the national economy • Annual IT and telecom services exports worth $100m

  15. Lessons Learned • Open the market for competition and encourage private sector to play a leading role • Stimulate Public–Private Partnerships • Foster sustainable business models • Ensure universal access to infrastructure and services • Capitalize on local human resources

  16. Thank You… Questions?

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