Egypt's fixed lines market keeps growing, bucking regional trend
Egypt’s fixed lines increased by one million between 2001 and 2002, which bucks a regional trend of GSM-inflicted stagnation in fixed lines growth, states an Arab Advisors report.
On the cellular front, Egypt’s cellular market will most likely remain a duopoly market until 2007, the report predicts. The Arab Advisors Group projects the GSM subscriber base in Egypt to reach 8.75 million subscribers by 2007.
The report estimates the fixed services (PSTN) revenues to reach $1.5 billion in 2003, while GSM revenues will also exceed the one billion dollar mark in 2003.
Egypt’s Telecommunication Regulation Law No. 10 for the year 2003 was issued following a parliamentary decision, and was enacted by the President of Egypt on February 4, 2003. The law further builds on Presidential Decree No.101 for the year 1998, which established the Telecommunication Regulatory Authority (TRA), rather than being a replacement to the decree. The law renamed the regulator as the National Telecommunication Regulatory Authority (NTRA), and redefined its role.
According to the new telecom law, Telecom Egypt will receive one license at no charge, for each activity or service provided directly by Telecom Egypt or through companies it establishes with others, as long as it owns a majority of the capital. This will extend until end of 2005. Excluded are frequency licenses and charges and mobile licenses.
“The whole telecommunication sector in Egypt is slated for liberalization by 2005. The Arab Advisors Group expects the PSTN market to remain a monopoly market operated by the incumbent operator, Telecom Egypt, till the start of 2006, when other players may enter different segments of the market,” noted Arab Advisors Group Research Analyst, Serene Zawaydeh.
“As for the cellular market, in October 2003, Telecom Egypt signed a preliminary agreement with Vodafone Egypt to purchase a 16.9 percent share of the mobile operator’s capital. Telecom Egypt, which has a license to operate a third mobile network, is also negotiating with MobiNil and Vodafone Egypt to delay the launch of its third mobile network till November 2007,” added Zawaydeh.
“Although delaying the launch of Telecom Egypt’s GSM network does not preclude another mobile licensee (should there be one) from entering the market before the end of 2007, the Arab Advisors Group expects the market to remain duopoly operated throughout the coming four years.” — (menareport.com)
© 2003 Mena Report (www.menareport.com)
- Report: Egypt's mobile connections outstrip their fixed-line counterparts
- Hertz Egypt expands team to meet growing car rental demands
- The telecom industry in Egypt is one of the fastest growing markets in the MENA region.
- Move to broadband in Africa gathers momentum, says new report: 20 Fixed-line operators have introduced ADSL