CAIRO: Egypt’s growing telecommunications industry is one of the country’s most exciting developing sectors. In little less than one decade, the industry has gone from nearly non-existence and no ministry to one of the country’s fastest growing and largest ministry. Since the creation of the ministry of communications and information technology in 1999, Egypt established a new era of liberalized policies with business as a central theme characterized by new regulatory laws. This was part of a national strategy to create an export-driven, private sector-led ICT market. This plan focused on state-of-the-art national telecommunications network and human resources development has led to the Egyptian fixed-line telecom services being one of the fast growing in the Middle East and North African region. In 1999 when the ministry was established, Egypt’s telecommunications revenue from fixed-lines amounted to $1.85 billion; only 2 percent of the country’s GDP. The driving force behind the massive rise of the telecommunications industry is two-fold. First, the establishment of mobile services in Egypt in 1998 allowed for the country to truly enter the information technology age and has become the largest private sector investment in the country’s telecommunications sector, having reached a penetration level of around four percent. The second aspect to facilitate continued growth in the telecom sector has been the Internet, which less than 10 years ago had less than one million users. In a sense, Cairo has implemented a satellite dish by satellite dish approach to become the Middle East’s leading telecommunications hub. In sensing how strong communications and information technology could be for the country, the government is continuing to adopt the industry as a national priority, which has already been witnessed in a number of initiatives to this end. With the global information revolution placing an ever-increasing demand on developing economies and societies, such as Egypt, it is becoming necessary to create a strong and durable information society for the coming years. The country appears determined to decrease the digital divide and position itself firmly in the international arena. The government’s initiative, spearheaded by the ministry, was formed specifically to facilitate Egypt’s transition into the global information society. Through “Egypt’s Information Society Initiative†is realizing its twin objectives in building that society and a vibrant local ICT industry that fosters export growth. Central to the initiative is the belief that ICT power is a vehicle to support the nation and address socio-economic challenges. It is reinforcing the country’s e-readiness, an initiative that promises a unified e-strategy formulated on the national level to set a credible national ICT plan that is heavily based on joint public-private enterprises and the role of civil society for long-term success. A recent report published by the country’s Information Technology Industry Development Agency (ITIDA), the communication and information technology exports are currently on track to realize governmental goals of $1.5 billion in annual IT exports by 2010. Analysts and officials are confident that despite the economic struggles that are likely to be felt in 2009, the goals established earlier in the decade will be achieved. The initiative revolves around seven fundamental components reflecting the power of technology as an agent for change: e-Readiness, e-Government, e-Learning, e-Business, e-Health, e-Culture and promoting investments in the sector. In each area, the MCIT has launched uniquely Egyptian schemes to manage traditional problems in untraditional ways. The success of the government in promoting ICT in Egypt and the framework for what lies ahead already acts as a guide for other emerging countries. To this end, Internet usage cannot be underestimated as highlighting how far the country has come in recent years. A quick look at the statistics shows Egyptians are logging onto to the Internet in greater numbers. 44 percent of families are currently using computers, while 31 percent of private sector institutions use the Internet. Surprisingly, according to the ministry, this represents 60 percent of total firms using computers and ADSL as their preferred Internet access tool. This massive jump in users has led to an improvement in e-services by private and public companies, including Telecom Egypt – the country’s landline provider and top in North Africa – as well as any private or governmental company offering services to the public.   Phone inquiries, the issuance of birth certificates; ID’s and other government papers have been helped greatly by the advent of the government’s telecommunication boom. No longer must Egyptians stand in long lines to acquire materials for everyday life. The ministry said this has “reduced [the] burden on the public service facilities as well as citizens.†Egyptian society continues to transform as Internet penetration grows. The program echoes a society that is furthering expansion in ICT. In the long-term, Egypt seeks to develop partnerships with international investors to develop its CIT landscape. Telecom Egypt, the national telephone operator, is implementing an ambitious program to modernize its infrastructure that has already borne notable success through partnerships with multinational corporations. There are growing opportunities for telecom investors in the telephone – (both fixed and GSM – market and in the fast-growing Internet connectivity market. In the decade since the establishment of the ministry, Egypt’s role in international technology development has been unprecedented and created a market ripe for international and local investment. Analysts predict that despite a relative slowdown for the country expected in 2009, the ICT sector is likely not to feel the pinch as it continues to build toward its goals for 2010. BM
