Egyptian Telecom Industry: SWOT Analysis

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The following presentation is a SWOT analysis of emerging telecom market in Egypt.

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Egyptian Telecom Industry: SWOT Analysis

  1. 1. EGYPT: TELECOM INDUSTRYSWOT AnalysisParitosh Kashyap (PK)
  2. 2. 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
  3. 3. MAJOR TELECOM PLAYERS 35.8%, Mobile 23.8 %, Mobile 40.4%, Mobi le 100%, Fixed Line
  4. 4. 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.
  5. 5. 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.
  6. 6. 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.
  7. 7. THREAT Political Unrest: The possibility of a political unrest in the near future could be disastrous for the evolving telecom sector.

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