The Egyptian telecommunications sector is examining proposals that could significantly alter the current landscape of internet and landline services. According to Hussein Adel, Deputy CEO of Egypt's largest telecom company, these proposals require comprehensive technical and commercial studies. This includes evaluating the impact on the existing operational framework, contracts, and pricing mechanisms. The discussions took place during a meeting of the Parliament's Communications and Information Technology Committee.
Egypt's telecom market is regulated by the National Telecommunications Regulatory Authority (NTRA), established under the Telecommunications Regulation Law No. 10 of 2003. This law empowers the NTRA to issue licenses for establishing, operating, and managing telecommunications networks, as well as regulating services and pricing. Egypt's telecom infrastructure development has seen significant investments, with approximately 260 billion Egyptian pounds invested over the past decade to upgrade the country's telecommunications networks.
The state-owned Egyptian Telecommunications Company has been at the forefront of these investments, with an annual allocation of around 75 million dollars, or over 10 billion Egyptian pounds, dedicated to network development. These investments aim to improve service quality and expand network capabilities. The company, which was established in 1998, manages and develops Egypt's landline telecommunications network and offers a range of services including voice, internet, and IPTV.
Egypt has made notable strides in internet speed, ranking first in Africa for the fifth consecutive year in terms of average internet speed. This improvement is attributed to the substantial investments made in upgrading the country's telecommunications infrastructure. As of 2014, Egypt's average internet speed was about 3 megabits per second, significantly improving since then.
Proposals to eliminate the requirement for a landline to access home internet services and to double internet package capacities are under consideration. However, these suggestions need thorough examination due to their potential impact on the operational and contractual aspects of telecom services. Changing the service delivery model could necessitate adjustments to existing contracts and affect various internet packages, requiring a balanced evaluation.
The issue of pricing and package capacities is also being addressed. The Egyptian Telecommunications Company has submitted a proposal to the Ministry of Communications and Information Technology to double the capacities of fixed internet packages. This initiative aims to enhance service offerings in line with market demands and customer needs.
The discussions also touched upon the recent crisis at Ramses Central Exchange, which highlighted longstanding challenges in Egypt's telecommunications infrastructure. The incident resulted in significant disruptions but did not affect internet services. The company has been working on developing its core network to enhance service reliability and resilience.
Key points
- The Egyptian telecommunications sector is investing heavily in infrastructure development, with 260 billion Egyptian pounds spent over the past decade.
- Egypt ranks first in Africa for average internet speed for the fifth consecutive year.
- Proposals to cancel landline requirements for home internet and double internet package capacities are under technical and commercial review.
