EGYPT TELECOM INDUSTRY : SNAP SHOT The total number of mobile subscriber in Egypt is around 83 million. The total number of fixed line subscribers is around 8.57 million. The total number of USB modem users was around 2.83 million by the end of March 2011. By 2016 the total numbers of broad band users (includes modem as well mobile internet users) are estimated to be around 8.276 million. According to Arab Advisor survey which was conducted in September 2012, smartphones constitute 8.4 percent of the total mobile handset
MAJOR TELECOM PLAYERS 35.8%, Mobile 23.8 %, Mobile 40.4%, Mobi le 100%, Fixed Line
SWOT ANALYSIS- STRENGTH Emerging economy with a substantial population- A population of over 80 Million makes Egypt a fertile ground for telecom industry. Evolving market- Egypt is an evolving market both in terms of volume as well as value added services. Young demographic- A median age of 24 can ensure better adoption for latest technology and value added services.
WEAKNESS High prepaid market- Like other African countries Egypt is still a high prepaid market with voice services still dominating. Low internet usage- Egyptian market is still not very matured in terms of data usage. Aggressive Pricing- Competitive pricing strategy results in high churn out as subscribers jump over from one operator to another.
OPPORTUNITIES Triple License- According to a research conducted by Frost and Sullivan the couple of Triple play license is expected to raise revenue of USD $ one billion in the next five years. Multiple Tower Sharing- As tower building constitutes 50 percent of CAPEX for Egyptian operators, multiple tower sharing may result in reduction in operating cost and better profit margins. Expat population- The expat work force of Egypt (constituting high percentage of unbanked individuals) offers great opportunity for mobile banking and mobile payment to flourish.
THREAT Political Unrest: The possibility of a political unrest in the near future could be disastrous for the evolving telecom sector.