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Internet Evolution in Egypt - Success Stories and Lessons Learned. Baher Esmat Telecom Planning Manager Ministry of Communications and Information Technology - Egypt. Egyptian Information Society Initiative. Main Objectives
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Internet Evolution in Egypt - Success Stories and Lessons Learned Baher Esmat Telecom Planning Manager Ministry of Communications and Information Technology - Egypt
Egyptian Information Society Initiative Main Objectives • Develop the Egyptian society by raising the utilization of ICT in Egypt • Establish an export oriented ICT industry in the country
Egyptian Information Society Initiative Main Elements E-Society E-Government E-Business E-Knowledge CIT Industry Development E-Readiness
E-Readiness Initiatives • Public–Private Partnership in which the government articulates policy and regulatory frameworks for the private sector and civil society to implement for the benefit of the Egyptian citizen • Free Internet • PC for Every Home & Notebook for Every Specialist • IT Clubs • Broadband Access • E-Content
Internet Evolution in Egypt • October 93: Internet birth with 2 main service providers • EUN serving the research and education sectors • IDSC serving the public and private sectors • March 96: Commercialization of Internet Services • 12 ISP’s emerged in 1996, increased to 45 in Q3 1999 • 1999 - 2000: Licensing of Internet Services • Licensing framework set and provided by the telecom regulator (NTRA) • Class A License for Backbone Providers • Class B License for PDN Operators • Class C License for ISP’s & Content Providers • Today there are 4 Class A providers, 4 Class B and more than 150 Class C’s
Free Internet • Launched in January 2002 • Subscription-free Internet access • Cost of local phone calls (1.23 EGP per hour) • Special numbering prefix (0777xxxx & 0707xxxx) • Public–Private Partnership: MCIT and NTRA with TE and private ISP’s • TE shares its Internet calls revenues with operators (30% : 70%) • 1 million households are currently using Free Internet • Worth annual revenues of 200m EGP
PC for Every Home & Notebook for Every Specialist • Launched in December 2002 • An affordable way for individuals and small businesses to acquire PC’s and laptops on monthly installments • Use TE’s phone bill as a collateral • Stimulate local assembling of PCs’ components • TE, 2 national banks and 23 Egyptian companies are contributing in the initiative • More than 105,000 PC’s have been sold so far
IT Clubs • Provide computer training and Internet access in deprived areas • Established in youth centers, schools, colleges, NGO’s, cultural centers, etc… • The government provides the club with PC’s, LAN and Internet access whereas the club owner is responsible for furnishing the place • To date there are around 850 IT clubs all over Egypt with Internet access • Each club creates 2 -3 job opportunities
Broadband Access • April 02: Local Loop Unbundling • TE allows licensed operators (A & B) to co-locate their DSLAM’s and offer ADSL services to end-users • Sluggish growth during the first couple of years (only 8,000 subscribers) • May 04: Broadband Initiative • Reduce Subscription Fees for ADSL access by 50% (150 EGP/month for 256kbps) • Facilitate installation and activation procedures • Intensify awareness and marketing campaigns • The initiative also addresses other issues such as broadband wireless access, convergence and Arabic content • Number of ADSL subscribers has grown from 8,000 in May 2004 to more than 58,000 to date
Arabic E-Content • E-content in general is a key element for the success of any broadband business • Preserve Egypt’s wealth of Arabic content i.e. books, novels, movies, songs • Ensure Egypt’s leadership as a hub for culture and civilization • Provide the proper means for the e-content industry to pick up and flourish • Work closely with the private sector to develop the framework for sustainable business models
More Indicators • 9.9 million fixed telephone subscribers • 9.8 million mobile subscribers • 1,484 companies in IT and telecoms • 37,372 professionals in IT and telecoms • More than 6,000 annual professional trainees in IT and telecoms (22,318 trainees in 4 years) • Annual growth in the IT and telecom sector is around 13% • IT and telecoms represent 19% of the national economy • Annual IT and telecom services exports worth $100m
Lessons Learned • Open the market for competition and encourage private sector to play a leading role • Stimulate Public–Private Partnerships • Foster sustainable business models • Ensure universal access to infrastructure and services • Capitalize on local human resources
Thank You… Questions?