ICT Sector in Egypt:
Amr HASHEMMinistry of Communications and Information Technology
Arab Republic of Egypt
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
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