Egypt  - Readiness for the Networked World                             

Network Access in Egypt had been controlled by Telecom Egypt, which has monopolized the information and telecommunications industry within Egypt in the past.  Along with Telecom Egypt, Egypt’s government with Egyptian National Communications and Information Technology (CIT) in 1999 developed a strategic information technology plan for the country.  However, during the past few years, many new players have entered Egypt’s information technology sector, resulting in several upgrades to its network backbone, improving Egypt’s network access.

Information Infrastructure (Stage 3)

The Cabinet IDSC Information & Decision Support Center (IDSC) and the Supreme Council of Universities (FRCU) in collaboration with Egypt Telecom are cooperatively running the internet backbone in Egypt.  Egypt’s government identifies information technology as the key to enabling private sector firms and the government to operate efficiently. [1]

Egypt’s network backbone consists of a Transport Network SDH 3 Rings and a Frame Relay/ATM network with packet switching and IP-based technology for high speed access, and the use of Fiber Optic Cables.  This has been accomplished by adding equipment and increasing the data rate through the upgrade of multiplexers.  This is the only fiber optic network in the region.

Internet Availability (Stage 3)

Internet availability is accessible country wide for those that have access to personal computers in major urban areas of Egypt. There are 4 million internet users in 2006 up from 540,000 in 2001 according to the Arab Advisor Group.  In comparison to other nations, Egypt is one of the most advanced technologies enabled country in Africa.  However compared to the rest of the world, Egypt is still a developing country in the technology world.

Egypt has become the largest internet market in Africa.  The free internet initiative proposed by Egypt’s government has increased internet availability to the people of Egypt.  However, the affordability of personal computers for rural or lower income residents has been a central limitation for those to access the internet.

Internet Affordability (Stage 3)

Currently, internet users are able to access the internet with a price of a phone call.  The free internet model commenced in Egypt in 2002 where many believed this free model will increase the number if internet users in the country.  For example, Arabia.com offers users in Egypt with free internet access, with the price of a local call, once they download their software. 

Network Speed and Quality (Stage 2)

The free internet service has provided internet users in Egypt with a fast, reliable dial-up service.  However compared to the rest of the world, speed and quality are still at the lower end of the spectrum.  Average dial-up and broadband speeds are 32-40 Kbbs. 

There are 196 Internet Service providers; however there is a limited number of ISPs that are Class A, all-inclusive provider.  Class A internet service provider resells bandwidth to other Internet Service Providers. 

Network Speed and Quality (Stage 2) (continued)

This bandwidth sharing by ISPs presents a danger where a failure on the part of the Class A provider will disrupt services for many customers as there is only a single point of failure.

Hardware and Software (Stage 2)

The major obstacle hindering the Egyptian population on accessing the Internet and other network services is the cost of personal computers.  Personal computers are a luxury item in Egypt.  However, MCIT along with Telecom Egypt has launched a PC for Every Home initiative model for public-private partnership. It offers affordable, internet-enabled family computer on installments.  Since the launch of the project late in 2002, the initiative improved growth in both the local assembly and software industry as well. So far over 65,000 PCs were purchased through the initiative.

“Egypt is a major market for software development and this plan has the potential to create tremendous opportunities for software developers in the country”, said regional manager for ACCPAC International Inc., Marc Van der Ven.  Studies have shown there are 160 software development houses in Egypt that employ 10,000 developers.  [2]  This potential of software development has open many doors in the software world for Egypt’s users where software packages are more readily available then before. 

Service Support – (Stage 4)

Service support has benefited greatly with the deregulation and privatization of the network / telecommunications industry in Egypt.  Several smaller firms have entered the market to provide services, which has increase competition. This competition has lead to firms leveraging their customer service  to attract and retain customers.   

Previously, controlled by the government Telecom Egypt has adjusted to the new customer focused  market within Egypt.  They are the largest provider for fixed-line provider in Egypt and provides the majority of Internet services.  They service  10.8 million customers and are aggressively improving, and upgrading their internal systems  to provide better customer service.  For example, they recently signed with a leading software vendor to provide their customers with an automated billing system which will provide e-billing and convergent billing for their customers.  [3]   They also offer support services from their websites where customers can request support and usually get serviced in a short amount of time.