Copyright © 2004 Sherif Kamel Egypt Goes Online Sherif Kamel The American University in Cairo.

Copyright © 2004 Sherif Kamel

Egypt Goes Online

Sherif Kamel

The American University in Cairo


Information society and emerging global trends related to technology, business and the economy

Massive developments in the areas of information, computing and internetworking

Role of IT innovations as a window of opportunity to leverage business and socioeconomic development

Growing interest in Egypt to develop its national information infrastructure (NII)

Egypt goes online


History with information An information flow taking place for over 5,000 years (Ancient

History)

First largest and most famous library worldwide (Alexandrina)

Arab Manuscripts on Papyrus papers (Middle Ages)

Printing and publishing of papers in the 19th century starting with the 1st journal in 1826 (Modern Ages)

First telecommunication signal was in Alexandria in 1854

In the 20th century, since 1985 a focus on the Information Society


National information and administrative reform initiative

Programs Year

Open door policy 1974

Economic reform program 1985

Information and decision support program 1985

1989

Building Egypt’s information infrastructure 1994

Formulating Egypt’s knowledge-based society 1999

Addressing ICT issues at the cabinet level 2004

Information road-map


Civilization dating back to 3000 BC Population of 70 million (58% under the age of 25) 1 Million Km2 (4% only is inhabited) Literacy rate 58% (8% computer literacy) US$ 1,000+ per capita income (Global Credit Research, 2003)

5.5% inflation rate 3.2% GDP growth

Egypt

www.idsc.gov.eg

Egypt in numbers


ICT building blocks [1985-Present]

1. Information base building

[Information]2. Human resources development

[Knowledge and User]3. Infrastructure development

[Technology]4. Business development

[Facilitator]


Investing in people

16 million+ in education Schools 14.5 Million (1.2+ million graduates in

2004) University 1.2 Million (250000+ graduates

annually) Post-Graduate Education 300000

Ranked 17th worldwide in number of yearly graduates

13Universities

13Universities

66Institutes

66Institutes

Government

Private 5Universities

5Universities

61Institutes

61Institutes

18+ Universities127 Institutes

18+ Universities127 Institutes

www.mcit.gov.eg


Statistics of professional training

www.citegypt.com


Statistics of basic IT skills training

www.citegypt.com


Education empowerment

Provision of affordable PCs, software and Internet connectivity for students.

Introducing computers in school education (bottom-up) – Kids clubs, schools and universities.

Many access centers in universities and schools Integrating IT in curricula development Establishing Information Technology Institutes

(ITIs). Training of trainers

o Financed by the government and the private sector.


www.idsc.gov.eg

Community awareness

Establishment of over 1375 IT training centers (mass end users literacy centers) with 8-10 PCs in each

TV/Satellite/Video “Media-Driven Society” Government subsidized Internet Cafes [300 in

2001, focus on low income communities] Introducing the TACC Model [Technology

Awareness Community Centers]


11.8 Million telephone lines with massive opportunities for growth (elimination of years-long waiting lists for landlines)

6.7+ mobile phones (2 operators since Nov 1997) 48,800+ Public Phones (Pre-Paid Cards, since January

1999 17% compound annual growth in telecommunications

Communications Facts

www.mcit.gov.eg


Projects introduced

Free Internet initiative (January 2002) which boosted the Internet users from 400000 in 1999 to 3.6 million (1.1 million households) in 2004o ISPs collect their revenues as a percentage of the telephone call

cost (currently 70%).o Plan is to reach 1.6 million households = 5.5 million users (2005)

Establishment of over 970 IT clubs for communities across the different 26 provinces (mostly in rural and poor areas)

www.mcit.gov.eg


Projects introduced

PC for every home project allowing the purchase of computers on installments and at affordable priceso 76000+ sold in the first month, plan is to penetrate 200000

households annually

2% computer penetration rate (2002) Problem in financing purchasing computers (need a

system based on installments NOT cash) Collateral could be the land line (guaranteed by Telecom

Egypt) Computer prices range between LE230-3400 (10% is

paid as down payment, monthly installment of LE70-100)


Projects introduced

Broadband initiativeo May 2004 – widen utilization of ICT in Egypto LE150 per month for connectivityo 9 companies cooperating with Telecom Egypt for service

provision


Business development Challenge

o Develop the use of communications and information technology to serve Egypt’s development objectives (build the industry) Over 1100 firms in the industry in 2004 (350% growth rate

from 1999). Average employees per firm (15-50). Over 270K-350K PCs sold annually. 35% of domestic annual growth in IT products and services 200% of annual growth rate in exports (mainly to Arab

Countries – Arabization of Software). GOE is the largest user with 25% of total IT consumption.

www.mcit.gov.eg


Investment in ICT

www.citegypt.com


ICT market segmentation

www.citegypt.com


ICT services offered

www.citegypt.com


Role of government in Internet diffusion Government subsidized Internet Cafés

o Created in youth centers, public librarieso Schools and NGOso Focusing on deprived and low income communities o Establish Internet Caféo Technology access centers

Building Smart Villageso Software developmento Information technology serviceso Consultationo Assembly manufacturing of computers and peripheralso Training o Business development

First Project – Pyramids Smart Village


Components of Egypt’sInformation Society

eReadiness eBusiness eLearning eHealth eHeritage CIT-Industry Development eGoverment


ExampleeReadiness

Indicator 2004 2007 Annual rateof growth

Internet users 3.6 million users 7 million users 48.57%

PCs 1.5 million PCs 3 million PCs 50%

IT clubs 1000 clubs 3000 clubs 66.67%

BroadbandSubscribers

15000 500000 956%


ExampleeBusiness

Providing the necessary legislation for electronic transactions

National Postal Authorityo Leading eBusiness example in Egypt

Postal checks = LE149 million Pensions = LE3.08 million payees (LE832 million per

month) Savings accounts = 12.1 million customers (LE 28.7

billion) Service outlets = 3391 government offices, 5549 non-

government outlets


ExampleeLearning

Spreading knowledge through a hybrid of interactive models

Integrating ICT in the educational system Developing experts in advanced ICT (certified by leading

ICT multinationals) Establishing smart schools (state-of-the-art

infrastructure) – 12000 schools were connected in 2003 Establishing eLearning centers


ExampleeHealth

Establishing a network for telemedicine Setting up a data warehouse for medical records


ExampleeHeritage

Establishing an information-base for Egyptian civilization and natural preservation


ExampleCIT Industry Development

Promoting exports Outsourcing Developing centers of excellence in software engineering

o Use of the Smart village 300 acres 54 companies (25000-30000 job openings)

o Moving MCIT, TRA, and CASE to the Smart Villageo Microsoft, Alcatel, Vodafone and Ericsson are thereo Should be generating 250-300 million US dollars within 5 years

Investment incentives (tax exemptions)


Egypt’s Vision [1999-2009]

Establish a long-term ICT infrastructure development plan Government-private sector partnership for the development of the

ICT sector Invest in human resources (build a knowledge-based society) To minimize the “digital divide” between rich and poor, urban and

rural areas, men and women, young and old Forging alliances with multinationals Developing an increasing local market need Encouraging venture capital financing Promoting incubators start-ups Investing in high-tech industries Building an online business environment


New prospects

New telecommunications act expected in 2005 Electronic signature bill was signed in April 2004

o Allowing the use of electronic signatures in financial transactions

Telecommunication sector to be fully liberalized by the end of 2005

Establishing the Authority for IT Industry Development to handle all matters relating to eBusiness

Copyright © 2004 Sherif Kamel Egypt Goes Online Sherif Kamel The American University in Cairo.

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Transcript of Copyright © 2004 Sherif Kamel Egypt Goes Online Sherif Kamel The American University in Cairo.