1 Internet Supply. 2 Internet Demand

2013 2013 1

Building on our efforts in standardizing the ICT indicators according to international organizations, this statistical profile was produced in line with the OECD s «Statistical profile for the future of internet economy» Egypt s ICT Indicators Portal has been launched by the Ministry of Communications and Information Technology (MCIT) in 2008 to disseminate the Egyptian information society indicators www.egyptictindicators.gov.eg 2

2013 Contents 1- Internet Supply......4 2- Internet Demand........4 3- Type of Internet Access......5 4- Profile of Internet Users.... 6 5- Behavior of Internet Users.....8 6- Affordability.......9 7- Secured Internet....11 8- Internet Everywhere....12 9- New Internet Horizon 9.1 Mobile Data Services...13 9.2 Internet through Smart Phone........14 10- Internet for Women.......15 11- Improving Human Resources.......17 12- Public Access Internet Points.........18 13- Internet for Government Entities.....20 14- Internet for Private Business....22 15- Social Impact of Internet 15.1 Internet Effect on Education Sector.24 15.2 Internet Effect on Health Sector 26 16- Internet Effect on Political Life...28 17- Internet and Social Networking...29 18- Internet Effect on Economic Performance...29 19- International Comparisons...31 3

1 Internet Supply Mbps Figure (1.1) International Internet Bandwidth & Per Capita Share of Internet Bandwidth 200000 180000 160000 140000 120000 100000 80000 60000 40000 20000 0 5 10 13 2001 2002 2003 23 359 201 62 129 2.249 1.565 1.267 2004 2005 2006 2007 2008 2009 2010 2011 2500 2000 1500 1000 500 0 Bps Both international internet bandwidth and per capita share of internet bandwidth witnessed a steady growth over the period (2001 2011) International internet bandwidth increased with an average annual growth rate of 97.32% over the period (2001 2011) to reach 181,854 MBPS by the end of year 2011. Consequently, a significant increase is realized in the per capita share of internet bandwidth to reach 2249.33 BPS by the end of year 2011 on the expense of the narrowband internet users. 2 Internet Demand Internet users and internet penetration increase exponentially during the period (2000 2011) Egypt adopted many strategies to increase the diffusion of the internet. This has been reflected in a significant increase in internet users from 0.65 million users in year 2000 to reach 29 million users in year 2011. As a result, Internet penetration hiked from 1.01% in year 2000 to 35.8% in year 2011 with average annual growth rate of 3.2% during this period. Figure (2.1) Internet Users and Internet Penetration million user 35 30 Internet users Internet penetration 40 % 35 % 30 % 25 22% 25 % 20 18% 16% 20 % 15 14% 12% 13% 15 % 11% 10 8% 10 % 5 5 % 0 1% 2% 1 1 6 7 8 9 10 10 10 17 23 29 0 % 2000 2001 36% 30% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 % of population 4

2013 3 Type of Internet Access Dramatic increase in broadband internet users at the expense of the decrease in narrowband internet users 89.4% of total internet users access the web through broadband access compared to 11% use the narrowband access during year 2011. Proportion of broadband internet users have witnessed an increase reaching almost 90% in year 2011 on the expense of the narrowband internet users. Figure (3.1) Broadband vs. Narrowband Users 100% 80% 60% 40% 20% 0% 56% 44% 2007 43% 58% 19% 14% 11% 82% 87% 89% 2008 2009 2010 2011 Broadband Users Narrowband Users Figure (3.2) ADSL Subscribers by Speed (2011) 256 kb/s- 2mb/s; 92 2mb/s - 10 mb/ s; 8.5 Most of ADSL subscribers access internet via a speed of 256Kb/s 2Mb/s 92% of ADSL subscribers prefer using 256Kb/s 2Mb/s speed mainly due to its price affordability, while only 8% access the internet with any speed higher than 2 Mb/s. more than 10 mb/s; 0.5 USB modem subscribers are doubled during the period (2009 2011) USB modems have recently became a very common mean of internet access, where USB modem subscribers have increased from 434.2 thousand users in year 2009 to reach 2.68 million users in year 2011 with an average growth rate of 162.1% million user Figure (3.3) USB Modem Subscribers 3.0 2.68 2.5 2.0 1.5 1.47 1.0 0.5 0.43 0.0 2009 2010 2011 5

Mobile internet users have increased dramatically during the period (2009 2011) By the end of year 2011, mobile internet users represented 13% out of total mobile subscribers compared to 8.6% in year 2009. Meanwhile, those mobile internet users comprise more than one third of internet users (36%) in year 2011 compared to 28% in year 2009. Figure (3.4) Mobile Internet Users 40% 30% 20% 10% 0% 9% 28% 2009 34% 11% 13% 36% 2010 2011 % of mobile subscribers % of internet users 4 Profile of Internet Users Figure (4.1) Internet Users by Gender Figure (4.2) Internet Users by Age Group Female 40% Male 60% Age 25-74 45% Age 75 and over 0% Age less than15 20% Age less 15-24 35% *according to ITU age categories Figure (4.3) Internet Users by Educational Level* Figure (4.4) Internet Users by Employment Status Tertiary Education 17% Upper Secondary or Post Secondary non-tertiary 30% *currently studying Primary Education or Lower 24% Lower Secondary Education 29% 60% 50% 40% 30% 20% 10% 0% -10% 56% Out of Laborforce Wage Worker 30.6% Freelancer 7.4% 4.6% 1.4% Dosen, t Work Uncategorized 6

2013 Figure (4.5) Internet Users by Work Status 32.82% Internet users are characterized by: 60% of them are male users 45% of the users are 25 years old and above More than 50% of the internet users are secondary students, either lower secondary level (include preparatory and vocational education), or upper secondary level (include general secondary and technical secondary education beside institutional educational level) While only 17% are at the tertiary stage of education, which include university students and post graduate students 56% of internets users are out of labor force, as they include students, housewives, retired and military servants, while the wage workers represent only 30.6% 32.8% of current users who work are professionals, ie: occupations whose main tasks require a high level of professional knowledge and experience in the fields of physical and life sciences, or social sciences and humanities 7

5 Behavior of Internet Users Figure (5.1) Internet Activities Undertaken by Individuals Internet banking Purchasing or ordering goods or services Download software Playing or downloading video games or computer Getting information about goods or services Interacting with general goverment Organization Getting information from general goverment Communicating (Sending and Receiving email) Getting information related to health or health Reading or downloading online newspapers Education or learning activities Download (movies, images, music, watching TV or Posting information or instant messages Telephoning over the internet/voip 0% 0.1% 0% 0.4% 2% 2.5% 3% 1% 9.8% 9.8% 24% 9.9% 9% 10.7% 22% 20.6% 26% 33.3% 34% 35.7% 39% 36.8% 50% 45.0% 45.6% 48.4% 55% 55% 0% 10% 20% 30% 40% 50% 60% 2010 2011 Communication and entertainment activities are the most common internet activities undertaken by individuals in 2011 48% of internet users use telephoning over the Internet, followed by posting information and instant messages (46%) and downloading movies, images, music and watching TV (45%). Figure (5.2) Frequency of Individuals Accessing the Internet At least once a week but not every day 34% Less than once a week 11% At least once a day 55% More than half of the users access the internet at least once a day in 2011 Daily usage is the most common internet access rate in 2011, in which 55% of total Internet users at least access the Internet once a day. While 34% of the users access the internet at least once a week but not every day. 8

2013 6 Affordability Broadband affordability improved along the period (2008 2011) According to the International Telecommunications Union (ITU), Egypt s fixed broadband price basket has declined to reach 4% of per capita Gross National Income (GNI) in 2011, rather than 5.5% in 2008 and 2009. 6% 5% 4% 3% 2% Figure (6.1) Fixed Broadband Price Basket as a % of GNI Per Capita 5.5% 5.5% 4.0% 4.0% 1% 0% 2008 2009 2010 2011 Figure (6.2) Internet Usage by Households Income- Bracket 100% 100% 100% 90% 80% 70% 60% 50% 54% 40% 30% 20% 20% 10% 0% less than 1000 LE 1000-3999 LE 4000-7999 LE more than 8000 LE All the Households earning income higher than 4000 L.E. use the internet household survey results in December 2011 indicate that the higher the household income is, the more households use ICT services. Such that all the households earning more than 4000 LE per month use Internet services. 9

Figure (6.3) Households Monthly Spending on ICT Services ($ value) 18 $ 16 14 12 10 8 6 15.4 9.8 7.1 10.5 13.3 12.9 5.2 11 14.3 12.7 4.8 10.7 12.2 15.2 11.5 5.2 4 2 0 2008 Fixed lines Mobile Computer Internet 2009 2010 2011 Household monthly spending on mobiles is the highest among the ICT services Household spend monthly on mobile services 15.2$ and 12.2$ on the fixed telephone, compared to 11.5$ on computer services and finally 5.2$ on internet services. Household monthly spending on internet services has decreased by $5.3 during the year 2011 period (2008 2011), while household monthly spending on mobiles has increased by $5.4 during the period (2008 2011). Figure (6.4) Proportion of Households Monthly Spending on Different ICT Services Computer 26% Internet 12% Fixed lines 28% Mobile 34% Households spend the most on mobile services The relative importance of household spending on ICT services is dominated by both mobiles and fixed lines, constituting 34% and 28% respectively of total household spending on ICT services in year 2011 while internet services constitute only 12%. 10

2013 Figure (6.5) Internet Price Index (2002 2011) Internet price level decreased extensively through the period (2002 2011) Based on dial up per minute price rate and ADSL price level, Internet price index decreased by 66 points, showing the improved affordability of Internet prices in Egypt during the period (2002 2011) 7 Secured Internet 160 150 140 130 120 110 100 90 80 70 60 148 148 148 88 97 100 100 86 2002 2003 2004 2005 2006 2007 2008 2009 82 82 2010 2011 Figure (7.1) Households Taking Security Measures by Type Programs documentation for internal users Data backup Spam filter Spyware programs Firewall 0.3% 0.9% 1.2% 1.4% 2.1% Viruses scanning or programming protection 10.9% Securing connection between agents and servers Programs documentation for external users Intruder detection systems 18.2% 18.2% 18.7% 0% 5% 10% 15% 20% Securing connection between agents and servers, Programs documentation for external users and intruder detection systems are the most common security protection measurements used by households, composing 18% of the users per each measurement. 11

8 Internet Everywhere Figure (8.1) Internet Users in Urban vs. Rural Areas Divided into Broadband and Narrowband Users 100% 50% 0% 7.8% 2.9% 92.2% 97.1% Urban Internet Users Rural Internet Users Broadband Narrowband Broadband internet is more widely spread in urban and rural areas 92% of the internet users living in than narrowband internet urban areas and 97% of those living in rural areas use broadband internet access compared to 7.8% and 2.9% use narrowband internet access. Subscribers Figure (8.2) Dial-up Internet Subscribers by Region 300000 253.708 200000 112.764 48.740 77.873 100000 21.548 15.253 4.440 10.689 31.728 2.865 0 Cairo Delta Alex & Matrouh Upper Egypt Sinai, Red Sea & Canal 2008 2009 2010 2011 Although dial-up subscribers are decreasing nationwide, Cairo still incubates the biggest proportion of subscribers in 2011 Over the past three years dial-up subscribers have been declining across Egypt because of the new and faster internet access modes like ADSL and others. In the meantime, Cairo still constitutes 39% of the total dial up users in 2011, reaching 21,548 subscribers. 12

2013 Cairo enjoys the largest number of ADSL usage among other regions in Egypt Around 56% of ADSL subscribers in Egypt live in Cairo, while 19% of ADSL subscribers live in Delta region. Figure (8.3) ADSL Subscribers by Region 6% Cairo 7% Delta 12% Alex & Matrouh Upper Egypt Sinai, Red Sea & Canal 19% 56% 9 New Internet Horizons 9.1 Mobile Data Services (MDS) Figure (9.1.1) Mobile Data Service Users 77 76 75 74 % 73 72 71 70 69 68 76 73 71 2010 2011 2012 Slight increase is witnessed in Mobile Data Services Users during the period (2010 2012) About 76% of mobile owners showed to be using Mobile Data Services in year 2012. During the period (2010-2012) a slight rise can be noted in MDS usage, almost 5%, though expected to be higher, due to the massive increase in mobile subscribers and the increasing awareness of the importance of mobile services. Communication purposes is dominating Mobile Data Services activities in year 2012 MDS usage for communication purposes dominates to reach 95% of the MDS users, while 26% use it for getting information services, followed by entertainment and commerce, which are used by 18% and 11% of the users respectively. Figure (9.1.2) Main MDS Activities 100 90 95 80 70 60 50 40 30 20 10 0 18 11 26 Communication Entertainment Commerce Genrting Information 13

Figure (9.1.3) Frequency of Using MDS Weekly 10 8 6 4 2 0 3.7 less than 30 min 77.9 % of the MDS respondents use these services 2.8 3.2 8.2 30-60 min 60-90 min 90-120 min Irregular usage is the most frequent pattern of Mobile Data Service usage in year 2012 During year 2012, 77.9 % of the MDS respondents use these services irregularly, while 8% of the MDS respondents use the services 90 to 120 minutes weekly. 9.2 Internet through Smart Phones Figure (9.2.1) Usage Frequency of Smart Phone Users 38.5 6 5 47.6 Irregular usage is the most frequent pattern of smart phones usage in year 2012 About 48% of smart phone users access their devices irregularly, while around 39% of them use smart phones more than 120 minutes weekly during the year 2012. Less than 60 min 61-120 min more than 120 min irregulare usage Figure (9.2.2) Activities Undertaken by Smart Phone Users 80 70 60 50 40 30 20 10 0 75 Communication 10 Entertainment 62 Information 6 Commerce Communication purposes is dominating smart phones activities in year 2012 Communication is the most common activity for 75% of smart phone users while 62% access their smart devices to get information. This is mainly contributed to the diffusion of smart phone applications such as Facebook, Twitter and Whatsapp. 14

2013 10 Internet for Women Almost half of internet users are females Female Internet usage showed a steady growth during the period (2008 2010), while in year 2011 female internet usage slightly dropped to 41% of internet users. Figure (10.1) Female Using Internet 60% 40% 20% 44.2% 44.7% 45.2% 41.3% 0% 2008 2009 2010 2011 Figure (10.2) Internet Activities Undertaken by Female Users Internet banking Purchasing or ordering goods or services Downloading software Interacting with general goverment organizations Getting information about goods or services Playing or downloading video games or computer Getting information from general goverment Sending or receiving e-mail Getting information related to health or health Reading or downloading on-line newspapers or Education or learning activities Downloading movies, images, music, watching TV Posting information or instant messaging Telephoning over the Internet/VoIP 0.01% 0.23% 2.46% 6.21% 7.12% 7.82% 8.02% 20.43% 27.90% 33.10% 43.04% 47.91% 53.42% 53.52% 0% 10% 20% 30% 40% 50% 60% Mostly Communication activities dominate the female internet activities Telephoning over the internet (VoIP) as well as posting information and instant messages are the most common Internet activities undertaken by female with a proportion of about 53% of female Internet users in year 2011. Figure (10.3) Female Users by Governorates 4.58% 15.12% 26.69% 8.97% 44.63% Cairo Delta Alex & Matrouh Upper Egypt Sinai, Red Sea & Canal Internet female users are widely concentrated in the Egyptian Delta area Internet female users are widely concentrated in the Egyptian Delta area, comprising almost 45% of female internet users, while Upper Egypt incubates the second big proportion (26.7%) during the year 2011. 15

Young females are the most common Internet users 39% of female internet users are at ages between 15 and 24 years old, while 37% of them are at age 25 years old and above. Figure (10.4) Female Users by Age* 25-74 37% 75 years and more 0% less than 15 years old 42% 15-24 39% *according to ITU age categories Figure (10.5) Female Users by Education Level* Tertiary Education 16% Upper Secondary or Post Secondary non *Currently studying Primary Education or lower 24% Lower Secondary Education 31% Most of female internet users are at the secondary educational level 60% of female internet users are at the secondary educational level (either upper secondary or lower secondary), this is fairly comforted with the fact that 39% of female internet users are between 15-24 years. Figure (10.6) Frequency of Internet Usage by Females 60% 40% 20% 54.2% 35.9% 0% 9.9% At least once daily At least once Weekly At least once monthly More than half of female internet users access the internet at least once a day More than half (54%) of females use the internet at least once a day, while 36% of female internet users access the internet at least once a week. 16

2013 11 Improving Human Resources Figure (11.1) Training Services Provided by IT Clubs 80% 60% 40% 20% 0% Figure (11.2) Area of Benefits from ICT Services Provided by IT Clubs 80% 60% 40% 20% 0% 67% ICDL 40% Advanced Computer Courses 14% 16% 11% 11% Using e- goverment services Conducting governmental transactions over the internet 11% Language Courses 46% 43% Getting the ICDL Most of IT Clubs provide ICDL and advanced computer courses Around two-thirds of IT Clubs in Egypt provided ICDL training courses during 2011, while 40% provided advanced computer courses. 72% 73% Gaining high skills in computer and internet usage 17% 16% Aqcuiring a better job opportunity 2010 2011 3% 4% Gaining high skills in computer is the most attracting benefit of IT Clubs Gaining high skills in computer and internet usage was the most beneficial purpose from visiting IT clubs for 73% of the visitors, while getting the ICDL was a second priority of the overall areas of benefits that attracted 43% of visitors. Others Number of graduates from specialized and professional training programs has increased during the period (2007-2011) Number of graduates of specialized and professional training programs provided by the Information Technology Institute (ITI) and the National Telecommunication Institute (NTI), increased to reach 42.06 thousands in year 2011 compared to 31.5 thousands in year 2007 with an average annual growth rate reached 7.7%. Figure (11.3) Number of Graduates from Specialized and Professional Training Programs (thousands) Thousand graduates 50 45 40 35 30 25 20 15 10 5 0 31.5 33.1 37.4 40.8 42.06 2007 2008 2009 2010 2011 17

Figure (11.4) Number of ICDL Certified Persons Thousand persons 1000 800 600 400 200 0 830.5 520.1 231.9 159.8 43.5 2007 2008 2009 2010 2011 Number of ICDL certified persons have increased dramatically during the period (2007 2011) ICDL is one of the initiative adopted by MCIT to enhance the computer skills of the different segments of the society. Number of ICDL certified persons has increased from 43.5 thousands in year 2007 to 830.5 thousands in year 2011. 12 Public Access Internet Points IT Clubs are mostly visited by individuals between the age of 16-24 years About 47% of individuals visiting IT clubs are between the age of 16-24 years, while 29% of IT clubs visitors are between the age of 25-54 years. Figure (12.1) IT Clubs Users by Age 25-54 29% 55-64 1% 65 and more 0% Less than 16 23% 16-24 47% Figure (12.2) IT Clubs Distributed by Region 100% 80% 60% 40% 29% 28% 27% 26% 26% 5% 6% 5% 6% 6% 32% 36% 37% 36% 36% 20% 33% 31% 31% 33% 33% 0% 2007 2008 2009 2010 2011 Lower Egypt Upper Egypt The highest portion of IT Clubs is located in Upper Egypt IT Clubs have started as an initiative to spread ICT in the remote, poor and underserviced areas. This explains that the largest proportion of IT clubs (36%) is located in Upper Egypt during the period (2007 2011). Border Governorates Urban Governorates 18

2013 Figure (12.3) Proportion of IT Clubs Classified by Services provided Phone and Fax Multimedia Play Station Playing over the Internet Scanner ICT training Computer without Internet Printing Internet 5% 7% 12% 10% 12% 14% 20% 24% 27% 27% 66% 2010 2011 68% 80% 71% 82% 83% 68% 87% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Internet is the most common service provided by IT clubs in 2011 87% of IT clubs provide internet services to its visitors, followed by printing services, which is provided by 83% of the IT clubs, while On the other hand, 71% of the IT clubs surveyed offer their visitors the possibility of using computer without internet access. and 68% of them provide ICT training services for their visitors Figure (12.4) Internet Activities Undertaken in IT Clubs Banking transactions Buying goods and services Dealing with govermental entities Getting information on goods and services Getting info. about gov. entities via their websites or e-mail Getting information about health and health Services Reading and downloading e-books Downloading games and song Playing via the internet Communication Education and educational purposes 2% 2% 5% 7%11% 10% 22% 20% 32% 27% 24% 29% 33% 36% 36% 40%43% 2010 44% 51% 50% 2011 60% 72% 0% 10% 20% 30% 40% 50% 60% 70% 80% Educational purposes are the most common internet activities performed by IT clubs visitors The majority of IT clubs visitors use the internet for educational purposes (72%), while almost half the IT clubs visitors use the internet for communicating (50%). Reading and downloading e-books is also performed by more than one third of the IT clubs visitors (36%). 19

Figure (12.5) Average Number of Weekly Visitors in IT Clubs Visitors 205 200 195 190 185 180 175 170 165 181 2009 177 200 2010 2011 On average, around 200 visitors go to IT clubs on a weekly basis IT clubs weekly visitors have increased from 181 visitors/week in year 2009 to 200 visitor/week in year 2011, and are expected to increase more in the coming years; due to the increasing importance of ICT services in all aspects of life, in addition to some new initiatives adopted by the Egyptian government to encourage ICT usage. 13 Internet for Government Entities Figure (13.1) Internet Usage by Main Government Entities 84% 82% 80% 78% 76% 74% 72% 75.8 2010 82.4 2011 Internet usage increased in main government entities More than 82% of the main government entities (excluding the branches and affiliates) use the internet in year 2011, compared to 76% in year 2010, achieving 6.6% annual growth rate. 20

2013 Figure (13.2) Main Government Entities Having Websites and Service Provided through Those Websites (2011) Participating in e-commerce E-payment E-learning/ video conferencing/ e-training Sending personal data in electronic forms Employment services/receiving C.Vs for those Reviewing personal data on related databases of the entities Paper forms and information requests Downloading and printing electronic forms Integrated e-services (forms requests, download and fulfillment..,etc) E-mail for receiving citizens, enquiries Dissemination of media publications about the entities Information about the entities providing the services 5% 5% 66.7 of the Goverment 23% entites having 28% websites 35% 36% 44% 48% 56% 71% 90% 95% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Providing information about their services and dissemination of publications are the most common services offered by Government entities websites Around two thirds (66.7%) of the main government entities have websites, such that 95% of them provide information about themselves and their services, while 90% of them disseminate the entity-related media publications on their websites. Figure (13.3) Proportion of Main Government Entities Engaging in E-gov/ E-com Almost one third of the main government entities using internet participate in e-government and e-commerce services 25% of the main government entities using internet have participated in e-government services in year 2011, compared to 9% participated in e-commerce. 30% 25% 20% 15% 10% 5% 0% 24.9% 9.8% 12.0% 8.7% 2010 2011 % participating in e-goverment % participating in e-commerce 21

Figure (13.4) E- commerce Services Undertaken by Main Government Entities Others Receiving orders of selling goods/offering services 13% 3.3% 6% 11.7% 2010 2011 Sending orders of selling goods/offering services 0% 13.3% Advertising goods and services Bids and tenders publication 56% 56.7% 63% 58.3% Receiving technical and financial offers 75% 70.0% 0% 20% 40% 60% 80% Using the government entities websites for receiving technical and financial offers was the most common e-commerce activity in 2011 70% of the main government entities engaging in e-commerce services in year 2011 have received technical and financial offers as a major activity of e-commerce, compared to 75% in year 2010, which might be attributed to the political unrest during year 2011 resulting in lower transactions. 14 Internet for Private Businesses Figure (14.1) Enterprises Using Internet by Firm Size 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 31% 10-49 employees (small Enterprises) 73% 50-249 employees (Medium Enterprises) 86% more 250 employees (Large Enterprises) Internet usage increases proportionately with firm size 86% of the large private enterprises (250+ employees) are using the internet, which is the highest among different firm sizes. On the other hand, 31% of small enterprises (10-49 employees) are using the internet. 22

2013 Broadband is dominating private enterprises internet access Broadband usage has become the main access mode for 91% of private businesses enterprises, in year 2011. The majority of private enterprises access the internet through broadband (connections with speed of at least 256 Kbit/s. Figure (14.3) Proportion of Private Businesses with Website 25% 24% 24% 23% 23% 22% 22% 21% 21% 20% 20% 19% 21% 22% 23% 24% 2008 2009 2010 2011 Figure (14.2) Private businesses using internet by access mode 100.0% 80.0% 60.0% 40.0% 20.0% 0.0% 93.1% 11.9% 12.3% 16.2% 2008 2009 Broadband 94.5% 92.7% 91.0% 2010 Narrowband 2011 21.2% Proportion of private enterprises having websites increased steadily through the period (2008 2011) The proportion of private enterprises having websites has increased during the period (2008-2011) from 21% to 24% of all private enterprises in Egypt, with an average annual growth rate of 1%. Many private enterprises use their websites for operating their businesses, placing and receiving orders through internet and providing customer services online. Figure (14.4) Internet Activities Undertaken by Private Businesses Others Accessing other financial services Staff training Employing individuals Telephonic over the internet/voip, or using Instant messaging, bulletin boards Delivering products online Dealing white e-goverment services (printing forms Internet banking Getting information from general government Providing customer services Sending and receiving e-mail Getting information about goods or services 1.6% 7.3% 12.9% 13.0% 16.2% 16.2% 18.0% 23.1% 32.4% 39.5% 46.5% 75.6% 77.1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Most private enterprises use the internet for getting information about goods or services and exchanging e-mails Getting information about goods or services is the most common internet activity undertaken by 77% of the private enterprises using internet in year 2011; followed by sending and receiving e-mails (75.6%) Almost half the private enterprises using the internet provide customer services online (47%), while of around one third of them use internet for online banking or financial services (32.4%). 23

Figure (14.5) Proportion of Private Enterprises Conducting E-sale and E-purchase E-sales and e-purchases constitute a considerable portion of private enterprises total sales and purchases* The proportion of e-sales constitute around 30% of private enterprises total sales, while that of e-purchases has reached 16% of total purchases in year 2011. *These proportions are calculated from the private enterprises participating in e-commerce. 35% 30% 25% 20% 15% 10% 5% 0% 30% E-sales (as a% of total sales) 16% E-purchase (as a% of total sales) 15 Social Impact of Internet 15.1 Internet Effect on Education Sector Figure (15.1.1) Teachers vs Students Usage of Internet Schools Students and teachers usage of internet have increased in year 2011 Year 2011 has witnessed increases in internet usage for both school teachers and students compared to their usage in year 2010, especially with a significant jump for students internet usage that have increased from 27% of the students in year 2010 to 60% in year 2011. 80% 60% 40% 20% 0% 59% 27% 2010 Teachers 67% 60% 2011 Students 24

2013 Figure (15.1.2) ICT Impacts on Students ICT services improves students performance Using ICT services in educational process proved to be stimulating information and knowledge for students which came as number one benefit with the biggest weight, followed by helping in making the academic materials more interesting. Facilitating materials delivery Makes materials more interesting Stimulating student s information and knowledge 44% 62% 64% 0% 20% 40% 60% 80% Figure (15.1.3) ICT Impacts on Teachers No change Clarifies material contents Makes the materials more interesting 11% 63% 69% ICT services improve teachers performance Using ICT services helped the teachers to present the academic materials in more interesting ways as a top benefit, followed by helping them to clarify more the materials content. 0% 20% 40% 60% 80% Most of Egyptian faculties are connected to the internet and use it in education process The proportion of faculties and institutes connected to the internet increased by 6% during the period (2009 2011) to reach 91% in year 2011, compared to 85% in year 2009. While the proportion of faculties and institutes using internet in the education process increased by almost 12% during the period (2009 2011) to reach 85% in year 2011, compared to 73% in year 2009. Figure (15.1.4) Proportion of Faculties Connected to the Internet and Using it in Education 2011 2010 85% 91% 78% 87% 73% 2009 85% 0% 20% 40% 60% 80% 100% Faculties use internet in education Faculties connected to the internet 25

Figure (15.1.5) Number of ICT Faculties and Institutes Number of ICT Faculties and Institutes 250 200 150 100 50 0 175 202 224 219 236 2007 2008 2009 2010 2011 The number of faculties and institutes with ICT specialities have increased during the period (2007 2011) Total number of faculties and institutes with ICT specialities has increased from 175 in year 2007 to 236 in year 2011 with an average annual growth rate of 7.96%. A slight increase in university instructors and students usage of internet in year 2011 In year 2011, 97% of university instructors use the internet versus 86.6% of university students, with a slight increase of 1% compared to year 2010. Figure (15.1.6) Instructors vs Students Usage of Internet (Universities) 100% 95% 90% 85% 80% 75% 96.6% 2010 85.1% 97.0% 2011 86.6% Instructors Students 15.2 Internet Effect on Health Sector Figure (15.2.1) Hospitals Internet Usage According to Hospital Type Most of educational hospitals use internet in Private 33.2% year 2011 Governmental 57.4% In year 2011, 70% of educational hospitals used the Internet. This proportion was the Educational 70.3% highest among other types of hospitals (57% for public hospitals and 33% for private ones). 0% 20% 40% 60% 80% 26

2013 Figure (15.2.2) Internet Usage in Hospitals by Type of Activities Using internet in financial and banking transactions Sending and receiving e-mails Getting information from governmental entites through their websites or e-mails 5.7% 5.4% 2.9% 13.4% 13.4% 29.7% 27.3% 32.1% 54.1% Information / researches/ medical reports exchange Getting information on some medical apparatus (e.g. their prices and usage) 13.4% 22.0% 22.6% 20.6% 43.2% 51.4% 0% 10% 20% 30% 40% 50% 60% Private Educational Governmental Getting information is the most dominant activity for hospitals Getting information from governmental entities through their websites or e-mails was the most dominant internet activity (54%) for educational hospitals, this was the same first priority of internet for 32% governmental hospitals. On the other hand, getting information about medical apparatus was the first activity for 22% of private hospitals, followed by getting information from governmental entities, information on reports and researches and sending and receiving e-mails with 13% for each. Figure (15.2.3) Type of Internet Connection in Hospitals Most of hospitals are connected to the Internet through ADSL 80% of hospitals are connected to the internet through ADSL connections, while 20.5% of hospitals use wireless connections. Only 3% of hospitals are connected to the internet through leased lines. Leased Line 3.0% Dial up ISDN Wireless 13.8% 17.8% 20.5% ADSL 80.1% 0% 20% 40% 60% 80% 100% 27

16 Internet Effect on Political Life Figure (16.1) Proportion of Smart Phones Users Using their Devices in Participating in the Political Life 43 57 Yes No More than half of Egyptians having smart phones use their devices to participate in political life During year 2012, 57% of smart phone users showed that they used their phones to participate in the political life, sharing and expressing their political views and opinions, through different smart phone applications. Figure (16.2) Activities of Using Smart Phones in Political Life 64 Mobile Internet plays an important role in helping people to participate in political life During year 2011, 64% of smart phone users use their devices to be updated by political news and highlights, and around 40% participate in social networks like Facebook and Twitter. While only 15% of smart phone users use their devices to get information about the Updated by news highlights 38.5 share in social networks 15 helps in election process 28

2013 17 Internet and Social Networking Figure (17.1) Number of Facebook Users million user 10 8 6 4 2 0 4.2 9.4 2010 2011 Facebook users are more than doubled in year 2011 Facebook users have dramatically increased from 4.2 million user in year 2010 to reach 9.4 million user in year 2011, thanks to the Egyptian youth revolution of 25 January 2011, where Facebook was the hub of virtual meetings to coordinate youth s political acts Figure (17.2) Number of Twitter Users Twitter users have increased exponentially during year 2011 Twitter users have increased enormously during the year 2011 to reach 129 thousand users rising from 19.3 thousands users in year 2010. This huge increase is also attributed to the 25 January 2011 revolution, where people depended heavily on digital social network such as Twitter. thousand user 140 120 100 80 60 40 20 0 19.3 2010 129 2011 18 Internet Effect on Economic Performance Figure (18.1) ICT Sector Revenues ICT Revenues increased during the period (2009/2010 2011/2012) ICT sector has generated revenues of 65 billion EGP in fiscal year 2011/2012 compared to 61 billion EGP in fiscal year 2009/2010. ICT revenues grow with a growth rate of 6.5% during this period. 29

The ICT sector makes a substantial contribution to the Egyptian GDP ICT sector contribution to the Egyptian National GDP reach 4.6% in fiscal 2011/2012 compared to 4.2% in fiscal year 2009/2010 Figure (18.2) ICT GDP Contribution to Egyptian National GDP Figure (18.3) Growth Rate of ICT Sector Among other Economic Sectors Tourisim Wholesale & Retail Transportation & Storage Construction ICT The ICT sector achieved the highest growth rate in 2010-2011 and the second highest in 2009-2010 The ICT sector recorded the highest growth rate among the different socioeconomic sectors in fiscal year 2010/2011 reached (7%) and the second highest growth rate in 2009/2010 reaching (13%). Figure (18.4) ICT Companies Number of ICT companies Number of ICT companies almost doubled during the period (2007 2011) Number of ICT companies reached 4,428 company in year 2011 compared to 2348 company in year 2007. The number of ICT companies has increased with an average annual growth reaching 17.3% during the period (2007-2011). 30

2013 19 International Comparison Figure (19.1) Fixed Broadband Internet Access Tariff ($ per month) Egypt is among the cheapest countries in the MENA region in providing fixed broadband internet access Among the MENA region countries, Egypt stands as one of the cheapest provider for fixed broadband internet access, with monthly charge of USD 8.2, followed by Tunisia with USD 11.7 per month. On the other hand, United Arab Emirates comes as the most expensive country in the provision of the fixed broadband service, with USD 40.6 per month. Figure (19.2) International Internet Bandwidth Egypt enjoys a fairly advanced international internet bandwidth among the MENA region countries Turkey and Saudi Arabia proceeded in capacity of internet bandwidth with 552,960 Mbit/ sec and 317,944 Mbit/sec respectively. Egypt enjoys a fairly advanced international internet bandwidth among the MENA region countries with 142,964 Mbit/sec. 31

Figure (19.3) Broadband Internet Penetration Broadband internet penetration in Egypt still needs improvements Among MENA region countries, Egypt has taken a fairly late place in Internet Broadband penetration, as 2 out of 100 individuals have access to broadband internet, compared to Israel (25 persons) and United Arab Emirates (10 persons). It is worth mentioning that internet broadband uptake is growing steadily in Egypt since 2007, with an average annual growth rate of 40.3%, reaching 1.8 million subscribers. Figure (19.4) Mobile Internet Penetration Broadband internet penetration in Egypt still needs improvements Qatar enjoys a fairly high mobile internet penetration due to its small population, as 70 of 100 individuals use the mobile internet, compared to Saudi Arabia (33 persons), on the other hand 9 of 100 persons in Egypt use the mobile internet. It is also worth mentioning that mobile internet uptake is growing steadily in Egypt since 2009, with an average annual growth rate of about 54%, reaching 3.07 million subscribers in year 2011 compared to 1.3 million in year 2009. 32

2013 Sources, Definitions and Notes Figure 1.1 International Internet Bandwidth & Percapita share of internet bandwidth (MCIT) and National Telecom Regulatory Authority (NTRA) International internet bandwidth is calculated in mega bits per second (mbps), while Internet bandwidth per/capita is calculated in Bit/person (bps) Figure 2.1: Internet Users and Internet Penetration (MCIT), National Telecom Regulatory Authority (NTRA) and Telecom Egypt Internet users refer to an estimate based on the summation of the number of Dial-up, DSL, ISDN and Leased line subscribers multiplied by the average number of people using each subscription/ mode of access Figure 3.1: Broadband Internet Users (MCIT), National Telecom Regulatory Authority (NTRA) and Telecom Egypt According to the International Telecommunications Union (ITU), broadband refers to any internet connection with speed greater than 256 kbps. Broadband users number is calculated by the broadband subscribers multiplied by the average number of people using this access mode Figure 3.2: ADSL Subscribers by Speed (2011) Figure 3.3: USB Modem Subscribers (MCIT) and National Telecom Regulatory Authority (NTRA) Figure 3.4: Mobile Internet Users (MCIT) and National Telecom Regulatory Authority (NTRA) Figure 4.1: Internet Users by Gender Results of ICT usage in households and individuals surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Results of ICT usage in households and individuals surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public 33

Figure 4.2: Internet Users by Age Group Results of ICT usage in households and individuals surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics These age groups are according to ITU age categories Figure 4.3: Internet Users by Educational Level Results of ICT usage in households and individuals surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Educational levels are according to ITU education categories and defined as follows: Primary education or lower (no formal education) Lower secondary education: which include preparatory stage and vocational education Upper secondary or post secondary non tertiary education: which include general secondary and technical secondary education beside institutional educational level Tertiary education: which include university and post graduate stages of education Figure 4.4: Internet Users by Employment Status Results of ICT usage in households and individuals surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Employment status are defined as follows: Out of labor force: include individuals between the age 6-64 years old and not working, such as students, housewives, retired and military servants Wage workers: include individuals working for others in return of regular salary Freelancers: include individuals who are self employers Doesn t work: include unemployed individuals but able to work whether seeking jobs or not Uncategorized: any other employment status not included in the previous categories (for example individuals above 65 years old and didn t work before) Figure 4.5: Internet Users by Work Status Results of ICT usage in households and individuals surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Figure 5.1: Internet Activities Undertaken by Individuals Results of Survey released in 2010 on 20,097 households in cooperation with CAPMAS, with a response rate 94.12% 34

2013 Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Multiple answers were allowed Calculated as a percentage of the total number of individuals using the internet Figure 5.2: Frequency of Individuals Accessing the Internet Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Figure 6.1: Fixed Broadband Price Basket as Percentage of GNI Percapita Source: ITU. «Measuring the Information Society» (2010), version 1.01, p.p. (72) and «Measuring the Information Society» (2011), p. (72) The fixed broadband Internet sub-basket is calculated based on the price of the monthly subscription to an entry-level fixed broadband plan Price Basket for Internet Service is calculated based on the cheapest available tariff for accessing the Internet 20 hours a month (10 hours peak and 10 hours off-peak) Figure 6.2: Internet Usage among Different Households Income Groups (2011) Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Calculated as a percentage of the total households using internet Figure 6.3: Households Monthly Spending on Different ICT Services ($ Value) Results of survey released in 2008 on 19,289 households in cooperation with CAPMAS, with a response rate 96% Results of survey released in 2009 on 18,781 households in cooperation with CAPMAS, with a response rate 89.4% Results of survey released 2010 on 20,097 households in cooperation with CAPMAS, with a response rate 94.12% Results of surveys released in 2010 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Figure 6.4: Proportion of Household Spending on Different ICT Services Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Calculated as percentage of the total spending on ICT Figure 6.5: Internet Price Index (2002 2011) 35

Figure 7.1:Households Taking Security Measures by Type Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Multiple answers were allowed Calculated as a percentage of households with internet Figure 8.1: Internet Users in Urban vs. Rural Areas Divided into Broadband and Narrowband Users Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Figure 8.2: Dial up Internet Subscribers by Region (2011), Telecom Egypt and National Telecom Regulatory Authority Dial-up Internet subscribers are those who connect to the internet via a modem and telephone line, which requires that the modem dial a phone number when Internet access is needed. This item includes free Internet used by those who pay via the cost of their telephone call (as in the case of Egypt), those who pay in advance for a given amount of time (prepaid), and those who pay for a subscription (either flat-rate or volume-per-usage based). (International Telecommunication Union) Figure 8.3: ADSL Internet Subscribers by Region (2011), Telecom Egypt and National Telecom Regulatory Authority Figure 9.1.1: Mobile Data Services Users, in cooperation with National Telecom Regulatory Authority Results of MDS surveys released in 2010 on a sample of 1000 user, with response rate 99% Results of MDS surveys released in 2011 on a sample of 1000 user, with response rate 99% Results of MDS surveys released in 2012 on a sample of 1000 user, with response rate 99% Mobile Data services are defined as any services provided over the mobile phone other than Voice, e.g. (SMS, getting information and news, e-mails, ring tones, etc ) Figure 9.1.2: Main MDS Activities, in cooperation with NTRA. Results of MDS surveys released in 2012 on a sample of 1000 user, with response rate 99%. Figure 9.1.3: Frequency of Using MDS Weekly, in cooperation with NTRA. Results of MDS Surveys released in 2012 on a sample of 1000 user, with response rate 99%. 36

2013 Figure 9.2.1: Usage Frequency of SmartPhone Users, in cooperation with NTRA Results of smartphone surveys released in 2012 on a sample of 400 smartphone users, with response rate 99% Smartphones are mobile phones provided with advanced applications and capabilities to access the internet and to use different set of programs such as wording and calculation programs, special applications for social communication networks and chatting programs Examples of smartphones: (iphone, Blackberry, Android, Samsung, HTC, etc.) Figure 9.2.2: Activities Undertaken by Smartphone Users, in cooperation with NTRA Results of smartphone surveys released in 2012 on 400 individuals with mobiles, with response rate 99% Figure 10.1: Female Using Internet Results of survey released in 2008 on 19,289 households in cooperation with CAPMAS, with a response rate 96% Results of survey released in 2009 on 18,781 households in cooperation with CAPMAS, with a response rate 89.4% Results of survey released 2010 on 20,097 households in cooperation with CAPMAS, with a response rate 94.12% Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Proportions are calculated as a percent of total internet users Figure 10.2: Internet Activities Undertaken by Female Users Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Calculated as a percentage of total female internet users Multiple answers were allowed Figure 10.3: Proportion of Female Internet Users by Governorates Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Calculated as a percentage of total female internet users 37

Figure 10.4: Proportion of Female Internet Users by Age Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics These age groups are according to ITU age categories Calculated as a percentage of total female internet users Figure 10.5: Proportion of Female Internet Users by Educational Level Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Calculated as a percentage of total female internet users Figure 10.6: Frequency of Internet Usage by Females Results of surveys released in 2011 on 18,811 households with response rate 94% in cooperation with Central Agency for Public Mobilization and Statistics Calculated as a percentage of total female internet users Figure 11.1: Training Services provided by IT Clubs Results of survey of ICT usage in IT clubs conducted by the Ministry of Communications and Information Technology in cooperation with CAPMAS, (2011) Figure 11.2: Areas of Benefit from the ICT Services Provided by IT Clubs Results of survey of ICT usage in IT clubs conducted by the Ministry of Communications and Information Technology in cooperation with CAPMAS, (2011) Figure 11.3: Number of Graduates from Specialized and Professional Training Programs (MCIT), National Telecommunication Institute (NTI) and The Information Technology Institute (ITI) Figure 11.4: Number of ICDL Certified Persons (MCIT) - Training & Human Resources Department (ICDL Program) Figure 12.1: IT Clubs Users by Age IT clubs is a project with MCIT main contributor along with private and public sector, with the aim of providing every individual in the society the chance to develop his/her skills and knowledge through the use of technology. The project provides computer labs fully equipped 38