Egypt s Broadband Market Development Drivers
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- Claud Underwood
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1 Egypt s Broadband Market Development Drivers Global Symposium For Regulators Tunisia, November 2005 Mahmoud Nour Business Development Director, TE Data mahmoud.nour@tedata.net Outline Broadband Access Background Growth Limiting Factors Broadband Initiative PC for Every Home Initiative Other Initiatives Initiatives Impact What s Next? Rural Areas Development Page 1
2 Broadband Access Background Apr 2002 NTRA formulates Local Loop Unbundling operator providing broadband access operators providing broadband access Apr 2002 Apr 2004: 7,200 ADSL lines Broadband Growth (Users) Apr Apr ,200 4,800 1 Broadband line for every 1,000 Tel lines 1 New Broadband User every 75 minutes - 1,000 Apr Apr-04 Growth Limiting Factors Market Awareness Low market awareness and demand Developing the mainstream market (early majority + late majority) Broadband Prices Too high compared to income Cost components left no margin for price reductions Local Loop Unbundling Process was inefficient and time consuming PC s Penetration Low PC Penetration rate (1.5% 2003) Page 2
3 Broadband Access Initiative Inception Initiative Launched Target Broadband Initiative May 2004 in ITU Telecom Africa K broadband Users after 1 Year (May 2005) Empowering the Market / End User MCIT Telecom Egypt ISP's Formulated the initiative Increased market awareness by launching an independent government-sponsored marketing campaign Empowering operators through transmission and unbundling cost reductions (volume discounts) Provided an online B2B website that enhanced the provisioning / ordering cycle Reduced EUP Price from LE 290 / Month to LE 150 / Month (256 Kbps speeds) PC for Every Home Initiative Initiative Launched By Objective PC for every Home Nov-02 MCIT / PC Vendors / National Banks / TE Affordable PC's Paid on instalments Target Instalments Distribute 7 Million PC's in 7 Years By TE with regular telephone bills Page 3
4 Other Initiatives Broadband for Schools Project Broadband connect 7,000 schools to the Internet Egyptian Universities Network (EUN) Project Internet 2 30 Universities DS3+ Capacities Raising Literacy Rate Various governmental and non-governmental initiatives Universal Service RFI, NTRA, Sep 2005 Initiatives Impact operators providing broadband access Rural Areas Broadband Adoption Evolution of local regional resellers Increase in Internet café s numbers 1 Broadband line for every 100 Tel lines 1 Broadband User every 6 minutes Broadband Market (ADSL Lines) 103,000 Apr02-Apr04: 7,200 Lines May04-Aug04: 15,000 Lines Market Size Doubled 32,000 1,000 4, Page 4
5 Initiatives Impact Broadband Market (ADSL Lines) 918,000 1 Broadband line for every 10 Tel lines 1 Broadband User every 1.8 minutes 466, , ,000 1,000 4,800 32, , , What s Next? Rural Areas Development Social Challenges Literacy Rate Market Awareness Market Need Economic Challenges PC Penetration Affordability Business Case to operators (P&L) Technology Challenges None Opportunities Services VoIP for Consumers; Postpaid / Prepaid services Internet Café s Technology Wireless Last Mile Broadband; WiMax Funding Universal Service Fund Page 5
6 Thank You for your attention Egypt s Broadband Market Development Drivers Global Symposium For Regulators Tunisia, November 2005 Mahmoud Nour Business Development Director, TE Data mahmoud.nour@tedata.net Page 6
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