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Egyptian telco market bounces back

Gareth van Zyl
By Gareth van Zyl, Editor, ITWeb Africa
Johannesburg, 16 Mar 2012

Political uncertainty stalled Egypt's telecoms industry in the first half of 2011, but this did not stop the sector from generating $5.7 billion in revenue last year.

This is according to a study conducted by Pyramid Research, which says that, despite some stagnation in 2011, Egypt's telecoms industry is predicted to expand at 5.1% annually, between 2011 and 2016.

The researchers expect the bulk of this growth to come from both fixed and mobile data services, as a result of the Egyptian government's national broadband plan that seeks to extend network coverage.

“We expect the revenue growth from mobile voice services to almost come to a halt between 2011 and 2016, while mobile data will accumulate to generate a total of $11.1 billion between 2011 and 2016,” the report said.

“On the fixed side, the decline of circuit-switched voice will continue steadily to fall, generating a revenue of just over half a billion dollars in 2016,” the report added.

Pyramid Research also said the North African country's mobile penetration rate reached 97% of the country's estimated 81 million people in 2011. The company says most of Egypt's new subscriptions will be second or third SIM cards in years to come.

Furthermore, the fixed-line segment of Egypt's telecoms sector continues to be dominated by Telecom Egypt, as the operator accounts for 83% of all circuit-switched access lines in that country. Pay-TV subscriptions in Egypt also reached 969 000 at the end of 2011, according to Pyramid.

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