Egypt's ability to keep abreast with leaps in converging broadcast and ICT services is scrutinised. Pierre Loza attends a conference The convergence of the broadcast and Information and Communication Technology (ICT) industries has already been taking place in a number of Western markets, mainly the United States and Europe. For the average consumer, convergence can mean communicating through your television set, or even watching the latest film on your mobile phone. An integral part of convergence is that it entails triple play structures, where one entity would be providing television, telephone and Internet services all in one package. At a conference devoted to this topic, and held last week, Egyptian Prime Minister Ahmed Nazif highlighted convergence's role as both a developmental tool and a consumer product. "We need to react to the challenges of development in sectors like health and education." Nazif said. He added that, "this could entail private tutoring through an interactive method, which would in turn enhance education or even provide diagnostic services to people who don't have the means of reaching large hospitals." The prime minister acknowledged Egypt's advantage in providing content because of its historic role as a regional media hub in the Middle East. He pointed out the importance of developing the "right delivery mechanisms" that would make the service readily available to various social strata. "The catch is, can we make it affordable? Can everyone have access to it? We need to adopt our delivery mechanisms to such demands." Minister of Communication and Information Technology Tareq Kamel asserted that the "astonishing" growth levels witnessed over the last period in the communications sector underline Egypt's potential in becoming a regional centre for the provision of converged services. In the past year alone, mobile phone users increased by 100 per cent, approaching 15 million users. Internet users have also grown by 25 per cent in the same period and exceeded 5.5 million subscribers. "We are here because a coupling of broadband and digital media promises new business and investment opportunities, growth, and employment. We should become the regional hub of converged services," Kamel asserted. The minister also said that a policy initiative has been designed to increase broadband Internet penetration through quality improvements and more affordable pricing. The fledgling sector has already sparked investors' interests, such as the Irish Ganley Group's founder and chairman Declan Ganley, who is currently examining the prospects of investing some $500 million into Egypt's communications sector. Ganley, who played a leading role in consolidating the cable industry in Bulgaria believes that the Bulgarian experience holds lessons for the Egyptian market. "In Bulgaria, we acquired fiber and co-ax cable from various markets in Europe. A fiber optic ring was built around the country which connected all the major cities. It provided broadband to the last mile, and in many cases, converged services of multi media, voice, data and some other interactive services," Ganley said. He added that a "necessary first step" that was undertaken prior to the development of the infrastructure was to "confront the informal sector which can gradually be incorporated into the formal sector, after it has rectified its standing. "After pirate operators are taken into the formal economy, it is possible to connect all of them," Ganely said. On the regulatory front Egypt's National Telecommunications Regulatory Authority President Amr Badawi voiced the need for reshaping Egypt's regulatory framework so as to better fit the market requirements of convergence. "Convergence between the media and ICT industries must deliver the contents formed by some entity, through the infrastructure and network owned by another entity. Together they can provide the content to the user," Badawi said. With voice over IP taking 15 per-cent of the world's voice traffic, Badawi sees cable companies as the up and coming competitor to the telecommunications sector. Cable companies offering triple play service have already merged into the American market. In the Egyptian context however, a number of challenges face convergence. These include low GDP per capita and the uneven distribution of wealth and illiteracy. Badawi also expressed concerns about the need to devise "socially acceptable content". Vodafone's Director of Strategic Products Stephen Temple said he saw a greater role for mobile phones in areas where PC penetration is low. "In homes without Internet access, digital TV and mobile phones will become complementary. In this situation, we will see the mobile phone completely taking over the home," said Temple. Although he recognised the difficulty for mobile networks to compete in high density data transfers, Temple sees mobile phone penetration as a catalyst for increased PC penetration. "The presently available 3G technology is very effective at delivering mobile television on small screen sizes at an excellent quality. For bigger screens, a different technology is required," Temple said. Citing the polarity of converged markets, Temple insisted that regulation must be enforced by a single governing body. "There have to be consistent regulations across the different boundaries. We really need one regulator who would encompass all the means of access, and all the means of infrastructure in order to get consistency, because around the edges, there will be competition," Temple said.
