Market consolidation to diminish number of Egyptian ISPs
The Internet market in Egypt has been witnessing a steady growth. This is attributed to a number of factors among which is the Ministry of Telecommunication and Information Technology’s (MCIT) policy to liberalize the market and create competition. There are currently more than 13 Internet and Datacomm providers and some 65 small and virtual Internet Service Providers (ISPs).
Egypt’s Internet subscribers are projected to reach 680,000 accounts by 2006, up from 120,000 in 2001, a newly released report from the Arab Advisors Group asserts. The report found that Egypt’s “free Internet model” will be a major force behind consolidation and a market shakeout amongst Egyptian ISPs.
“We project Egypt to have 680,000 Internet accounts in 2006, a penetration rate of 0.93 percent, up from 0.18 percent in 2001. Our definition of “Internet Accounts” includes regular users of the free Internet model,” Shahin Shahin, Arab Advisors Group analyst said. “In 2006, Internet users are projected to exceed 2.6 million in Egypt, up from an estimated 540,000 in 2001. While the subscribers and users will grow, we see strong signs of an impending consolidation and shakeout phase in the country that will reduce the number of infrastructure-based “real” ISPs to nine by 2006.”
“Privately branded virtual ISPs, promoted by major brand names in Egypt in association with the big ISPs, are expected to increase to 145 by 2006,” he added. “Internet access revenues in Egypt will reach $81.5 million in 2006 up from $19.1 million in 2001.” — (menareport.com)
© 2002 Mena Report (www.menareport.com)