ICT Sector in Egypt:

Amr HASHEMMinistry of Communications and Information Technology

Arab Republic of Egypt

AHashem@mcit.gov.eg

A Model For Reform

Agenda

Outlook of Egypt ICT Reform Process

Timeline Major Policies Success Stories

Way Forward

Egypt Potential

Geography Cross Connection between

Europe, Africa and the Middle East.

Resources $80 billion invested in

modernization of infrastructure in 21 years

72 Million inhabitants with 50% under the age of 20

Ranking 17th worldwide in no. of yearly graduates

Reform Process

Empowerment of the Democratic Process Multi-Candidate Presidential

Elections Parliamentary Elections

under full supervision of the judiciary

Transition into a Market Economy Building the institutional and

regulatory framework Multitude of opportunities for

private investment

ICT Reform Process

1998

Apr. 1998:

Separation between telecom Regulation and Operation

May. 1998:

Privatization of mobile sector

1999

Jun. 1999:

Launch of Attempt to Privatize Telecom Egypt

Oct . 1999:

Establishment of Ministry of Comm. & IT

2001

Jan. 2001:

Launching of a number of PPP projects

Jun. 2001

Public Consultation on draft Telecom Act

2000

Jun. 2000:

Adoption of the Telecom. Master Plan

Jan. 2000

Announcement of National CIT Plan

Oct. 2000:Postponement of Privatization of Telecom Egypt

2000

Jan. 2003

Ratification of Telecom Law 13/2003

Apr.2003:

Joining WTO- Information Tech. Agreement.

20032002

Sept, 2002:

Failure of negotiations for establishment of revenue-sharing scheme for WLL

Jan. 2002:

Launch of a Subscription-Free Internet service

Jun. 2002:

Commitments to WTO concerning Basic Telecom.

Apr. 2004:

Ratification of E-Signature Law and establishment of ITIDA

May 2004:

Launch of Broadband Initiative

2004

Nov 2004:

Telecom Egypt receives investment grade rating

2005

Feb. 2005:

Launch of Universal Service Fund

Apr. 2005:

Initiating Privatization Attempt for Telecom Egypt

Dec 2005

De-regulation of telecom. market

Policy Principles

Involvement of partnerships throughout the process Empowerment of the role of

the civil society Free flow of information to

all stakeholders

Good Governance Decentralization of decision

making Critical Role of Regulatory

Institutions

Commitment of Political Leadership

to support ICT development

Information Society Initiative

Inclusion of the stakeholders in the analysis and policy development process

Government Technology Providers Service Providers

Formulation of a master plan for ICT sector development in a deregulated environment

E-Readiness E-Learning E-Government

Execution of the plan in a Public-Private Partnership approach

Network operators Academia Financial

institution

E-Health E-Culture ICT-Exports

Integration in Regional and Global Economy

Bi-lateral Trade Agreements

Multilateral Trade Agreements Euro-Mediterranean

Partnership Greater Arab Free

Trade Agreement Common Market for

East and South Africa World Trade

Organization

World Trade Organization

Undertook commitments for Basic Telecom Liberalization under the BTA in June 2002: Full commitment to

Reference Paper Technology-neutral

approach to licensing of services

Full Market Liberalization by the end of 2005

No limitations on Foreign Capital participation

World Trade Organization Egypt joined the

Information Technology Agreement in April 2003

Progressive Approach to Tariff reductions over 4 years Drop of tariffs by 2005 Extension for nascent

industries till 2007

Accelerated the execution as part of the customs reform package in September 2004 Dropped the cost of

deploying new ICT infrastructure by more than 33%

Instrumental in various initiatives for PC-ownership and broadband deployment

15.6

8.8

2.0 1.90.0

0.0

4.0

8.0

12.0

16.0

Base rate GATT 2004 New Tariff2004

GATT 2005 2007

Weighted Tariffs on ICT products

Further Liberalization under WTO

An offer for commitments on Computer Related Services for improving Egypt’s positioning as an IT hub for MENA No limitation on foreign staffing for the first 4 years of

operations No restrictions on foreign ownership or national treatment Permitting cross-border supply of services whenever required

Restructuring of the postal sector in Egypt inline with international best practices Licensing several companies for provision of Courier services

in Egypt No limitations on National Treatment or foreign participation

in courier companies

Professional Training

0

5

10

15

20

25

30

35

Dec.2000

Dec.2001

Dec.2002

Dec.2003

Dec.2004

Aug-05

Target2006

Target2007

Graduates in Thousands

Developing highly qualified experts through Internationally certified programs Decision Support & E-

Commerce System Analysis & Design Software Development Communication Networks

Management & Security Call Centers Operations and

Management Executed in cooperation

with Multinationals in a win-win approach

ICT Skills Development

Graduates in Thousands

Aiming towards improving ICT literacy Office Applications Internet Web Development

Executed in cooperation with universities and NGOs

Qualifying trainees for International Computer Driving License

0

50

100

150

Dec.2000

Dec.2001

Dec.2002

Dec.2003

Dec.2004

Aug-05

Target2006

Target2007

ICT Growth

Private sector is leading the growth in ICT sector Investments of private-

owned ICT Companies exceeded EGP 10 billions

Number of private owned ICT companies exceeded 1500 companies employing 35,000 employees

Supporting the ICT Associations’ formation: Egyptian Information

Telecommunication Electronics &Software Alliance (EITESAL)

Smart Village A business park over 300

Acres of land: Multinationals (Microsoft,

Alcatel, Vodafone, HP and Ericsson)

Call Centers Technological incubators MCIT and NTRA A financial district in Phase III

(2005-2006)

Regional Leadership in Converged Services

Emergence of Egyptian Companies as regional operators

Egypt is becoming a regional center for mobile network deployment and services ISC – Alcatel RNSC- Ericsson

An E-Content initiative for the digitization of Arabic Content

Privatization of Mobile Telephony has resulted in a wealth generation of almost EGP 35 billion

A service-oriented Growth

Encouragement of further Public-Private Partnerships for infrastructure, services and industry development Provision of Converged Services Postal Sector restructuring Launch of MVNOs

Further regional role in coordination and harmonization of policies and regulations as part of the global Information Society

Promotion of ventures serving regional markets Call centers Internet exchange regional service centers

Useful websites

www.mcit.gov.eg

www.citegypt.com

www.ntra.gov.eg