Egypt’s Internet market is growing strongly, according to a new research from the Arab Advisors Group. Spurred by infrastructure based competition and government initiatives, Egypt’s Internet accounts are projected, by the Arab Advisors Group, to grow at a Compound Annual Growth Rate (CAGR) of 23.7% between 2003 and 2008.
It is projected that Internet accounts will grow from around 647,000 by the end of last year to reach around 1.9 million by the end of 2008, a penetration rate of 2.5%. Internet users are expected to grow from 1.94 million by end of 2003 to reach 5.6 million by end of 2008, a penetration rate of 7.4%.
Egypt’s subscription-free Internet service has generated revenues amounting to US$ 66.2 million between January 2002 and August 2004.
A new report, “Egypt Internet and Datacomm Landscape Report 2004” was released to the Arab Advisors Group’s Media Strategic Research Services subscribers on December 5, 2004.
“The Internet and Datacomm markets in Egypt are fully competitive, where market liberalization started in 1999. The licensing framework is a three-tier one. There are currently 4 Class A licensees (carrier level Internet providers) and 8 Class B licensees (Public Data Network providers). By end of September 2004, the Class C licensees reached 186. These are Internet Service Providers that obtain leased lines from Class A licensees.” Ms. Serene Zawaydeh, Arab Advisors Senior Research Analyst wrote in the report.
“The Ministry of Telecommunication and Information Technology (MCIT) has launched several initiatives to accelerate the growth of the Internet market, by making the service affordable to end users. The Free Internet Initiative, which was launched in January 2002, has enabled users to access the Internet from any phone line, without the need for a dial up subscription, and for the cost of a local phone call, which is EGP 1.23 (US$ 0.2) per hour. The total number of unique dialers has reached 1,013,459 by end August 2004, with a total of 782,011,194 minutes. The subscription-free Internet service has generated revenues amounting to US$ 66.2 million between January 2002 and August 2004.” Ms. Zawaydeh added.
Broadband enabled value added services are also starting to mushroom in Egypt: The Central Bank of Egypt has licensed 12 banks to provide E-banking services. The services include phone and mobile banking as well as Internet banking services. Egypt’s e-government portal provides several e-government services.
