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ICT Sector in Egypt:

ICT Sector in Egypt:. A Model For Reform. Amr HASHEM Ministry of Communications and Information Technology Arab Republic of Egypt AHashem@mcit.gov.eg. Agenda. Outlook of Egypt ICT Reform Process Timeline Major Policies Success Stories Way Forward. Egypt Potential. Geography

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ICT Sector in Egypt:

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  1. ICT Sector in Egypt: A Model For Reform Amr HASHEM Ministry of Communications and Information Technology Arab Republic of Egypt AHashem@mcit.gov.eg

  2. Agenda • Outlook of Egypt • ICT Reform Process • Timeline • Major Policies • Success Stories • Way Forward

  3. Egypt Potential • Geography • Cross Connection between Europe, Africa and the Middle East. • Resources • $80 billion invested in modernization of infrastructure in 21 years • 72 Million inhabitants with 50% under the age of 20 • Ranking 17th worldwide in no. of yearly graduates

  4. Reform Process • Empowerment of the Democratic Process • Multi-Candidate Presidential Elections • Parliamentary Elections under full supervision of the judiciary • Transition into a Market Economy • Building the institutional and regulatory framework • Multitude of opportunities for private investment

  5. Jun. 1999: Launch of Attempt to Privatize Telecom Egypt May 2004: Launch of Broadband Initiative Dec 2005 De-regulation of telecom. market Jun. 2002: Commitments to WTO concerning Basic Telecom. Oct. 2000: Postponement of Privatization of Telecom Egypt Apr. 1998: Separation between telecom Regulation and Operation Jan. 2003 Ratification of Telecom Law 13/2003 Jan. 2001: Launching of a number of PPP projects Feb. 2005: Launch of Universal Service Fund Jan. 2000 Announcement of National CIT Plan 2000 2000 2001 2005 2002 2003 1999 2004 1998 Nov 2004: Telecom Egypt receives investment grade rating Jan. 2002: Launch of a Subscription-Free Internet service Apr.2003: Joining WTO- Information Tech. Agreement. Jun. 2000: Adoption of the Telecom. Master Plan May. 1998: Privatization of mobile sector Oct . 1999: Establishment of Ministry of Comm. & IT Jun. 2001 Public Consultation on draft Telecom Act Apr. 2004: Ratification of E-Signature Law and establishment of ITIDA Sept, 2002: Failure of negotiations for establishment of revenue-sharing scheme for WLL Apr. 2005: Initiating Privatization Attempt for Telecom Egypt ICT Reform Process

  6. Policy Principles • Involvement of partnerships throughout the process • Empowerment of the role of the civil society • Free flow of information to all stakeholders • Good Governance • Decentralization of decision making • Critical Role of Regulatory Institutions Commitment of Political Leadership to support ICT development

  7. Information Society Initiative • Inclusion of the stakeholders in the analysis and policy development process • Government • Technology Providers • Service Providers • Formulation of a master plan for ICT sector development in a deregulated environment • E-Readiness • E-Learning • E-Government • Execution of the plan in a Public-Private Partnership approach • Network operators • Academia • Financial institution • E-Health • E-Culture • ICT-Exports

  8. Integration in Regional and Global Economy • Bi-lateral Trade Agreements • Multilateral Trade Agreements • Euro-Mediterranean Partnership • Greater Arab Free Trade Agreement • Common Market for East and South Africa • World Trade Organization

  9. World Trade Organization • Undertook commitments for Basic Telecom Liberalization under the BTA in June 2002: • Full commitment to Reference Paper • Technology-neutral approach to licensing of services • Full Market Liberalization by the end of 2005 • No limitations on Foreign Capital participation

  10. World Trade Organization • Egypt joined the Information Technology Agreement in April 2003 • Progressive Approach to Tariff reductions over 4 years • Drop of tariffs by 2005 • Extension for nascent industries till 2007 • Accelerated the execution as part of the customs reform package in September 2004 • Dropped the cost of deploying new ICT infrastructure by more than 33% • Instrumental in various initiatives for PC-ownership and broadband deployment Weighted Tariffs on ICT products

  11. Further Liberalization under WTO • An offer for commitments on Computer Related Services for improving Egypt’s positioning as an IT hub for MENA • No limitation on foreign staffing for the first 4 years of operations • No restrictions on foreign ownership or national treatment • Permitting cross-border supply of services whenever required • Restructuring of the postal sector in Egypt inline with international best practices • Licensing several companies for provision of Courier services in Egypt • No limitations on National Treatment or foreign participation in courier companies

  12. Professional Training • Developing highly qualified experts through Internationally certified programs • Decision Support & E-Commerce • System Analysis & Design • Software Development • Communication Networks Management & Security • Call Centers Operations and Management • Executed in cooperation with Multinationals in a win-win approach Graduates in Thousands

  13. ICT Skills Development • Aiming towards improving ICT literacy • Office Applications • Internet • Web Development • Executed in cooperation with universities and NGOs • Qualifying trainees for International Computer Driving License Graduates in Thousands

  14. ICT Growth • Private sector is leading the growth in ICT sector • Investments of private-owned ICT Companies exceeded EGP 10 billions • Number of private owned ICT companies exceeded 1500 companies employing 35,000 employees • Supporting the ICT Associations’ formation: • Egyptian Information Telecommunication Electronics &Software Alliance (EITESAL)

  15. Smart Village • A business park over 300 Acres of land: • Multinationals (Microsoft, Alcatel, Vodafone, HP and Ericsson) • Call Centers • Technological incubators • MCIT and NTRA • A financial district in Phase III (2005-2006)

  16. Regional Leadership in Converged Services • Emergence of Egyptian Companies as regional operators • Egypt is becoming a regional center for mobile network deployment and services • ISC – Alcatel • RNSC- Ericsson • An E-Content initiative for the digitization of Arabic Content Privatization of Mobile Telephony has resulted in a wealth generation of almostEGP 35 billion

  17. A service-oriented Growth • Encouragement of further Public-Private Partnerships for infrastructure, services and industry development • Provision of Converged Services • Postal Sector restructuring • Launch of MVNOs • Further regional role in coordination and harmonization of policies and regulations as part of the global Information Society • Promotion of ventures serving regional markets • Call centers • Internet exchange • regional service centers

  18. Useful websites • www.mcit.gov.eg • www.citegypt.com • www.ntra.gov.eg

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