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Egypt Goes Online

Egypt Goes Online. Sherif Kamel The American University in Cairo. Egypt goes online. Information society and emerging global trends related to technology, business and the economy Massive developments in the areas of information, computing and internetworking

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Egypt Goes Online

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  1. Egypt Goes Online Sherif Kamel The American University in Cairo

  2. Egypt goes online • Information society and emerging global trends related to technology, business and the economy • Massive developments in the areas of information, computing and internetworking • Role of IT innovations as a window of opportunity to leverage business and socioeconomic development • Growing interest in Egypt to develop its national information infrastructure (NII)

  3. History with information • An information flow taking place for over 5,000 years (Ancient History) • First largest and most famous library worldwide (Alexandrina) • Arab Manuscripts on Papyrus papers (Middle Ages) • Printing and publishing of papers in the 19th century starting with the 1st journal in 1826 (Modern Ages) • First telecommunication signal was in Alexandria in 1854 • In the 20th century, since 1985 a focus on the Information Society

  4. Information road-map Programs Year Open door policy 1974 Economic reform program 1985 Information and decision support program 1985 National information and administrative reform initiative 1989 Building Egypt’s information infrastructure 1994 Formulating Egypt’s knowledge-based society 1999 Addressing ICT issues at the cabinet level 2004

  5. Egypt in numbers • Civilization dating back to 3000 BC • Population of 70 million (58% under the age of 25) • 1 Million Km2 (4% only is inhabited) • Literacy rate 58% (8% computer literacy) • US$ 1,000+ per capita income (Global Credit Research, 2003) • 5.5% inflation rate • 3.2% GDP growth Egypt www.idsc.gov.eg

  6. ICT building blocks [1985-Present] • Information base building [Information] • Human resources development [Knowledge and User] • Infrastructure development [Technology] • Business development [Facilitator]

  7. Investing in people • 16 million+ in education • Schools 14.5 Million (1.2+ million graduates in 2004) • University 1.2 Million (250000+ graduates annually) • Post-Graduate Education 300000 • Ranked 17th worldwide in number of yearly graduates 13 Universities 66 Institutes Government 18+ Universities 127 Institutes 5 Universities 61 Institutes Private www.mcit.gov.eg

  8. Statistics of professional training www.citegypt.com

  9. Statistics of basic IT skills training www.citegypt.com

  10. Education empowerment • Provision of affordable PCs, software and Internet connectivity for students. • Introducing computers in school education (bottom-up) – Kids clubs, schools and universities. • Many access centers in universities and schools • Integrating IT in curricula development • Establishing Information Technology Institutes (ITIs). • Training of trainers • Financed by the government and the private sector.

  11. Community awareness • Establishment of over 1375 IT training centers (mass end users literacy centers) with 8-10 PCs in each • TV/Satellite/Video “Media-Driven Society” • Government subsidized Internet Cafes [300 in 2001, focus on low income communities] • Introducing the TACC Model [Technology Awareness Community Centers] www.idsc.gov.eg

  12. Communications Facts • 11.8 Million telephone lines with massive opportunities for growth (elimination of years-long waiting lists for landlines) • 6.7+ mobile phones (2 operators since Nov 1997) • 48,800+ Public Phones (Pre-Paid Cards, since January 1999 • 17% compound annual growth in telecommunications www.mcit.gov.eg

  13. Projects introduced • Free Internet initiative (January 2002) which boosted the Internet users from 400000 in 1999 to 3.6 million (1.1 million households) in 2004 • ISPs collect their revenues as a percentage of the telephone call cost (currently 70%). • Plan is to reach 1.6 million households = 5.5 million users (2005) • Establishment of over 970 IT clubs for communities across the different 26 provinces (mostly in rural and poor areas) www.mcit.gov.eg

  14. Projects introduced • PC for every home project allowing the purchase of computers on installments and at affordable prices • 76000+ sold in the first month, plan is to penetrate 200000 households annually • 2% computer penetration rate (2002) • Problem in financing purchasing computers (need a system based on installments NOT cash) • Collateral could be the land line (guaranteed by Telecom Egypt) • Computer prices range between LE230-3400 (10% is paid as down payment, monthly installment of LE70-100)

  15. Projects introduced • Broadband initiative • May 2004 – widen utilization of ICT in Egypt • LE150 per month for connectivity • 9 companies cooperating with Telecom Egypt for service provision

  16. Business development • Challenge • Develop the use of communications and information technology to serve Egypt’s development objectives (build the industry) • Over 1100 firms in the industry in 2004 (350% growth rate from 1999). • Average employees per firm (15-50). • Over 270K-350K PCs sold annually. • 35% of domestic annual growth in IT products and services • 200% of annual growth rate in exports (mainly to Arab Countries – Arabization of Software). • GOE is the largest user with 25% of total IT consumption. www.mcit.gov.eg

  17. Investment in ICT www.citegypt.com

  18. ICT market segmentation www.citegypt.com

  19. ICT services offered www.citegypt.com

  20. Role of government in Internet diffusion • Government subsidized Internet Cafés • Created in youth centers, public libraries • Schools and NGOs • Focusing on deprived and low income communities • Establish Internet Café • Technology access centers • Building Smart Villages • Software development • Information technology services • Consultation • Assembly manufacturing of computers and peripherals • Training • Business development • First Project – Pyramids Smart Village

  21. Components of Egypt’sInformation Society • eReadiness • eBusiness • eLearning • eHealth • eHeritage • CIT-Industry Development • eGoverment

  22. ExampleeReadiness Indicator 2004 2007 Annual rate of growth Internet users 3.6 million users 7 million users 48.57% PCs 1.5 million PCs 3 million PCs 50% IT clubs 1000 clubs 3000 clubs 66.67% Broadband Subscribers 15000 500000 956%

  23. ExampleeBusiness • Providing the necessary legislation for electronic transactions • National Postal Authority • Leading eBusiness example in Egypt • Postal checks = LE149 million • Pensions = LE3.08 million payees (LE832 million per month) • Savings accounts = 12.1 million customers (LE 28.7 billion) • Service outlets = 3391 government offices, 5549 non-government outlets

  24. ExampleeLearning • Spreading knowledge through a hybrid of interactive models • Integrating ICT in the educational system • Developing experts in advanced ICT (certified by leading ICT multinationals) • Establishing smart schools (state-of-the-art infrastructure) – 12000 schools were connected in 2003 • Establishing eLearning centers

  25. ExampleeHealth • Establishing a network for telemedicine • Setting up a data warehouse for medical records

  26. ExampleeHeritage • Establishing an information-base for Egyptian civilization and natural preservation

  27. ExampleCIT Industry Development • Promoting exports • Outsourcing • Developing centers of excellence in software engineering • Use of the Smart village • 300 acres • 54 companies (25000-30000 job openings) • Moving MCIT, TRA, and CASE to the Smart Village • Microsoft, Alcatel, Vodafone and Ericsson are there • Should be generating 250-300 million US dollars within 5 years • Investment incentives (tax exemptions)

  28. Egypt’s Vision [1999-2009] • Establish a long-term ICT infrastructure development plan • Government-private sector partnership for the development of the ICT sector • Invest in human resources (build a knowledge-based society) • To minimize the “digital divide” between rich and poor, urban and rural areas, men and women, young and old • Forging alliances with multinationals • Developing an increasing local market need • Encouraging venture capital financing • Promoting incubators start-ups • Investing in high-tech industries • Building an online business environment

  29. New prospects • New telecommunications act expected in 2005 • Electronic signature bill was signed in April 2004 • Allowing the use of electronic signatures in financial transactions • Telecommunication sector to be fully liberalized by the end of 2005 • Establishing the Authority for IT Industry Development to handle all matters relating to eBusiness

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