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Mohamed Elnawawy TE Data, SAE

Egypt ’ s Free Internet Initiative The Arab Telecom and Internet Forum 28 - 31 Ma y 2003 Lebanon. Mohamed Elnawawy TE Data, SAE. Outline. Egyptian Market Overview Free Internet Initiative (FII) Framework FII Statistics FII Achievements FII Challenges FII Opportunities

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Mohamed Elnawawy TE Data, SAE

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  1. Egypt’s Free Internet InitiativeThe Arab Telecom and Internet Forum28 - 31 May 2003 Lebanon Mohamed Elnawawy TE Data, SAE Egypt's Free Internet Initiative

  2. Outline • Egyptian Market Overview • Free Internet Initiative (FII) Framework • FII Statistics • FII Achievements • FII Challenges • FII Opportunities • FII Growth Indicators • FII Business Model Adopters Egypt's Free Internet Initiative

  3. Egyptian Market Overview Economic Facts Egypt's Free Internet Initiative

  4. Egyptian Market Overview Economic Indicators * September 2002 A=Actual Source: CIBC (Commercial International Brokerage Co.) ** October 2002 E=Expected www.cibcegypt.com Egypt's Free Internet Initiative

  5. Egyptian Market Overview Internet Industry Milestones Egypt's Free Internet Initiative

  6. Egyptian Market Overview ISP’s Licensing Framework Egypt's Free Internet Initiative

  7. FII Framework Inception • Initiative First Announced Feb 2001 • Subscription Free Internet Service • Internet dialup Tariff = Local Phone Call Tariff (EGP 1.2 / Hour) • Users don’t pay additional subscription fees • Internet Calls Charges are collected by TE • With regular telephone bills • Basic Model relies on Offloading / Revenue Sharing Mechanisms • Special Numbering Prefixes (0777, 0707) Egypt's Free Internet Initiative

  8. 1 T A L K / D A T A T A L K R S C S T R R D T D C D Modem d i g i t a l User 2 d i g i t a l Local Exchange Local Exchange 3 Tandem Exchange Tandem Tandem PSTN d i g i t Exchange Exchange TRAFFiC 4 d i g i t a l Tandem Exchange d i g i t a l 5 IP TRAFFIC Local Exchange d i g i t a l Local Exchange Access Server 6 Radius E-Mail DNS 3 C o m INTERNET Router Ethernet FII Framework Offloading Concepts • Partial Offloading • Long Call Hold • Local Switch Offloading • Transit Switch Offloading • Overflowing Traffic • Non-POP Traffic Egypt's Free Internet Initiative

  9. 1 Local Mode T A L K / D A T A T A L K R S C S T R R D T D C D Exchange d i g i t a l User m Local d i g i t a l PSTN 2 Exchange d i g i t a l TRAFFiC Access Server 3 C o m Tandem 3 C o m Exchange Access Server Tandem Tandem d i g i t a l d i g i t a l Exchange Exchange IP TRAFFIC d i g i t a l Tandom Exchange d i g i t a l d i g i t a l Local Local Exchange Exchange 3 C o m INTERNET Access Server 3 C o m Route r Access Server DNS Radius Ethernet Mail FII Framework Offloading Concepts – Cont’d • Interconnection & Not Revenue Sharing • Local PSTN Tariff Egypt's Free Internet Initiative

  10. FII Framework Revenue Sharing • TE & ISP’s agreed on an offloading Revenue Sharing Formula ISP TE POP Calls (Offloading) 70% 30% NON-POP Calls (No Offloading) 30% 70% • ISP’s tend to cover more exchanges; increase offloading; increase Share of Revenue Egypt's Free Internet Initiative

  11. FII Framework Numbering Plan • Special Prefixes selected for FII(0777-XXXX & 0707-XXXX) • ISP’s acquire their number(s) from TRA for an annual fee. • ISP’s acquired the premium numbers from TRA in an auction, Dec 2001. • TRA guarantees Number Portability to Virtual ISP’s. Egypt's Free Internet Initiative

  12. FII Framework Launch & Coverage • Service was Launched 14 Jan 2002 • By H.E. President Hosny Mubarak • 100,000 users dialed on the first day • Coverage • Cairo: 14 Jan 2002 • Alexandria: 15 Apr 2002 • Canal Cities: 15 Apr 2002 • Delta: 15 Jun 2002 • Nationwide: 15 Oct 2002 Egypt's Free Internet Initiative

  13. FII Statistics ISP’s Source: MCIT, Apr 2003 Egypt's Free Internet Initiative

  14. FII Statistics Usage Source: MCIT, Apr 2003 Egypt's Free Internet Initiative

  15. FII Statistics Geographical Distribution Egypt's Free Internet Initiative

  16. FII Achievements • Consumer Related • Cost • Quality of Service (Pervasive Competition) • EUP Fixation requires creativity in Customer Care & QoS • Market / Industry Related • PSTN relief from Long Hold Calls • Rise to National Operator know-how • EUP Fixation requires creativity in building facility & developing business models Egypt's Free Internet Initiative

  17. FII Challenges • Technical Challenges • PSTN Billing; Call Calculation • Switch Convergence; Blurring the Lines • Future Technology; FII is based on copper local loop technologies • Blocking Content • Regulatory / Business Challenges • Local Loop Management • PSTN Tariff Re-pricing • Jan 2002 – Mar 2002: 10 PT / 6 Min’s • Mar 2002 – Present: 2 PT / Min • Market Awareness • HR Training; Capacity Building Egypt's Free Internet Initiative

  18. FII Opportunities • Initiative: “PC for every Citizen” • By: MCIT • Date: Nov 2002 • Target • PC’s at affordable prices to be sold and paid through installments on the telephone bills • Objective • Distribute 7 Million PC’s in 7 Years • Milestone • 9,000 PC’s sold in less than 5 weeks • Impact on FII • Increase Total Number of PC’s in Egypt • Increase Number of Internet Users in Egypt • Increase Total Minutes consumed on the Internet Egypt's Free Internet Initiative

  19. FII Growth Indicators Minutes Consumption • Feb 2002: 193 Million Minutes • Aug 2002: 445 Million Minutes (231%) • Feb 2003: 565 Million Minutes (293%) Egypt's Free Internet Initiative

  20. FII Growth Indicators Bandwidth Utilization • Feb 2002 Consumption: 155 Mbps • Aug 2002 Consumption: 245 Mbps (158%) • Feb 2003 Consumption: 380 Mbps (245%) Egypt's Free Internet Initiative

  21. FII Business Model Adopters Saudi Arabia Egypt's Free Internet Initiative

  22. FII Business Model Adopters Yemen Egypt's Free Internet Initiative

  23. Thank You Mohamed ElNawawy TE Data, SAE Egypt's Free Internet Initiative

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