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Telecommunication Equipment and Services (TEL)

Overview

. 2005 2006 2007 (estimated)
Total Market Size 3,360 4,320 4,925
Total Local Production 720 864 950
Total Exports 330 363 400
Total Imports 2,880 3,456 3,975
Imports from the U.S. 1440 1728 1988

(Exchange rate used: 1 USD = LE 5.75.  Values are in millions of U.S. Dollars.  Figures listed are unofficial estimates in millions.)


The Egyptian telecommunications sector is one of the most developed in the Middle East/North Africa region. Forecasts expect the sector to grow significantly in the coming three years until it reaches a peak in 2009. 

The telecommunications market was officially deregulated at the end of 2005, a move that opened the market for new entrants and created a competitive market. The deregulation opened the telecommunication market creating opportunity for equipment and services providers.  A third GSM 3G license was awarded in April 2006 for $2.9 billion to the consortium led by the UAE company Eitesalat (66%), Egypt Post (20%), the National Bank of Egypt (10%), and the Commercial International Bank (4%).  Eiteslat is planning to spend another $1 billion on infrastructure for its network. 

The National Telecommunication Regulatory Authority (NTRA) announced a license award to a consortium of Egyptian and Arab private sector companies to extend a maritime cable for international traffic, a $120 million project.  The cable will serve the Gulf region and south Europe. The construction of the cable should decrease international call costs and increase demand on internet broadband services, in addition to increasing Egypt’s exports of international telecommunication services.

Another anticipated step towards deregulation is NTRA’s upcoming release of two licenses for international gateways using open technology that will be awarded to the private sector.  The NTRA is also studying the guidelines to deploy WiMax.

Best Products/Services

  •  Wireless Networks and Solutions
  •  Wi-Fi
  • Wi-Max
  • Voice Over Internet Protocol (VoIP)
  • CDMA
  • DSL
  • GSM Solutions and Applications
  • Call Centers
  • Fiber Optic Cables
  •  Billing Solutions
  • Clearing houses for roaming
  • Triple Play
  •  E-numbering
  •  Mobile Number Portability
  •  Media Convergence
  •  Network Centers
  •  Call Centers

Opportunities

With the deregulation of the industry and the subsequent growth and investment, a wide range of telecommunication equipment and components, including copper and fiber optic cables, central office switches, cellular stations, data communications satellite, and microwave communication equipment will be required. New entrants will find business opportunities in wireless technologies, 3 G, Wi-fi, Wi-Max, VoIP, CDMA, GSM solutions and applications.  Wireless technology is being implemented around Cairo with hotspots installed in a number of hotels, coffee shops and restaurants.  The NTRA allowed domestic VoIP, and request for proposals for two international gateways using open technology will be announced in 2007

Resources

Commercial Service in Egypt:  http://www.buyusa.gov/egypt/en/
U.S. Embassy:  http://cairo.usembassy.gov/
USAID:  http://www.usaid-eg.org/
World Bank:  http://www.worldbank.org/
American Chamber of Commerce in Egypt:  http://www.amcham.org.eg
Egyptian Government Web Portal:  http://www.egypt.gov.eg/english/
Ministry of Communications and Information Technology:  http://www.mcit.gov.eg/
Telecom Egypt:  http://www.telecomegypt.com.eg/home-en.asp
National Telecommunication Regulatory Authority: https://www.ntra.gov.egwww.ntra.gov.eg 
Information Technology Industry Development Agency:  http://www.itida.gov.eg/
MobiNil:  http://www.mobinil.com/
Vodafone:  http://www.vodafone.com/

Contact for the Commercial Specialist in charge of the Telecommunication Sector: 
Ms. Hend El-Sineity, hend.el-sineity@N0SPAM.mail.doc.gov .