egypt state firm looks to cash in
Tuesday 18 March 2025
Last Updated : GMT 09:07:40
Egypt Today, egypt today

On thriving mobile sector

Egypt state firm looks to cash in

Egypt Today, egypt today

Egypt Today, egypt today Egypt state firm looks to cash in

That compares with fewer than 10 million subscriptions for land lines and DSL phone line-based internet services
Cairo - AFP

As Egypt's mobile operators thrive, state-owned Telecom Egypt is entering the market in an effort to boost state revenues.  In a country with more mobile phone subscriptions than residents, Egypt's only fixed-line operator is hoping to get in on the action with its new mobile service, WE.
But some established players say they fear the state-owned firm, which 
already owns 45 percent of top existing operator Vodafone Egypt, will enjoy unfair advantages.Egypt, with around 96 million residents, had nearly 100 million mobile subscriptions in 2016, according to a July report by the National Telecom Regulatory Authority.
That compares with fewer than 10 million subscriptions for land lines and DSL phone line-based internet services.
As the mobile sector booms, Telecom Egypt's entry into the market aims to introduce competition, the NTRA said in a report.
That could upgrade "the quality of services provided... at more affordable prices", it said, adding that it hoped to boost state revenues and create new jobs.  Within a month of its September launch, WE has attracted a million customers. But its polished advertisements may not be the only reason for its success.  It entered the sector at an opportune time, the same month as the official launch of 4G mobile internet services, repeatedly delayed by the government.
Also in September, the NTRA announced it would enforce a 30 percent 
increase in prices for mobile services-from which Telecom Egypt's offering would be exempt.
While the price hike was sudden, it met repeated demands by Vodafone, 
Orange, and Etisalat, which have objected to being forced to freeze prices 
despite 30 percent inflation as the Egyptian pound dived against the dollar following its flotation in November 2016.But some fear Telecom Egypt's exemption from the hike may be part of a broader pattern of unfair privileges.
Orange Egypt has invested some 15 billion pounds (around 730 million euros, $850 million) in its 4G services.
"It is a big responsibility for the government to ensure that competition regulations are implemented in an equitable manner," said Jean-Marc Harion, Orange Egypt's chief executive officer.
Such rules "have not always been respected in the field of telecoms," he said.
But Telecom Egypt says its entry into the mobile market was inevitable and should not be surprising in the age of smart phones.  "It's a matter of life and death," said CEO Ahmed El Beheiry.
"Over time people will give up on fixed internet and move to the mobile." Critics have argued that Telecom Egypt's ownership of 45 percent of Vodafone Egypt constitutes a conflict of interest.
But Beheiry denied any government favouritism towards his firm, adding that its rivals are anything but "weak, small players".  "There is no more difficult terrain than this in which we are entering," he said.
Telecom Egypt argues that its countrywide landline and DSL coverage is a major asset.
But analyst Ahmed Adel of the investment bank Beltone Financial said the 
firm's landline monopoly constitutes "a big challenge because of the number of complaints over the quality of these fixed services".Telecom Egypt currently relies on Etisalat Misr's mobile network as it develops its own.
The company will eventually have to show "its ability to acquire a market share in the absence of any operational advantage," he added.  Mostafa Abdel-Wahed, regulator NTRA's executive chairman, did not respond to repeated requests for an interview.
In an emailed response to questions, the NTRA said "the entry of the 
fourth mobile operator helps to increase competition between companies to benefit the citizens in terms of quality of services and prices".
It added that it "treats all companies equally without distinction".

Source:AFP

egypttoday
egypttoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

egypt state firm looks to cash in egypt state firm looks to cash in



GMT 22:07 2011 Friday ,02 September

Iran urges total ban on nuclear weapons

GMT 07:20 2016 Wednesday ,20 April

Kuwait oil workers call off strike, return to work

GMT 07:24 2011 Wednesday ,25 May

Qantas pilots head for first strike in 45 years

GMT 07:19 2017 Friday ,23 June

Queen Rania commends JAHD

GMT 01:31 2011 Wednesday ,21 September

Humanity falls deeper into ecological debt

GMT 03:05 2017 Thursday ,02 March

Terry Fox Run raises millions

GMT 09:34 2015 Sunday ,03 May

Russian ballet great Maya Plisetskaya dies

GMT 07:26 2018 Sunday ,14 January

At least four dead in Indian chopper crash

GMT 11:15 2018 Thursday ,11 January

GoPro shares dive as it cuts staff

GMT 13:48 2014 Thursday ,13 February

The origami-like Evolution Door that folds away

GMT 05:09 2011 Monday ,28 November

Northern Ghana hit by climate change

GMT 12:13 2012 Saturday ,30 June

A set of modern tables with many benefits

GMT 10:09 2017 Monday ,25 December

De Villiers says ready for Zimbabwe, India Tests

GMT 09:23 2017 Tuesday ,07 February

Airbnb landlord hit with record fine in Amsterdam

GMT 11:57 2017 Thursday ,09 March

Sleek MakeUP teams up with beauty influencers

GMT 16:33 2017 Tuesday ,19 December

US home construction edges higher in November

GMT 09:56 2016 Sunday ,04 December

Dortmund routs Gladbach in Real warm-up

GMT 13:48 2012 Monday ,09 January

PlayStation 4 to be unveiled this summer

GMT 10:07 2018 Sunday ,28 October

What next after Netanyahu’s visit to Muscat?

GMT 14:32 2018 Wednesday ,03 October

Bahrain Bourse daily trading performance

GMT 17:53 2011 Friday ,02 September

Lorenzo quickest in San Marino practice

GMT 14:55 2018 Thursday ,13 September

Roscosmos, NASA heads to meet on October 10

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

egypttoday egypttoday egypttoday egypttoday
egypttoday egypttoday egypttoday
egypttoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
egypttoday, Egypttoday, Egypttoday