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Overview

At a Glance

The Egyptian Company for Mobile Services (ECMS)


The Egyptian Company for Mobile Services (ECMS), launched in May 1998, provides a wide range of telecommunications services. ECMS operates under the brand name "Mobinil". ECMS is owned by France Telecom Group, Orascom Telecom Holding and public market equity investors. France Telecom Group and OTH have respectively 36.34% and 34.66% economic interest in ECMS. The remaining 29% shares are publicly traded on the Egyptian Exchange. Mobinil offers its customers 3G services and EDGE technology for high speed download, Internet communication, and high capability browsing. It is also working on the deployment of HSPA+ technology.

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Telecommunications Market in Egypt


The Egyptian telecommunications sector is one of the most developed markets in the Middle East and North Africa region. In 1997, the Egyptian government began liberalizing the telecommunications market and ever since, the telecom market has been demonstrating significant increase in terms of diversity and number of players. Telecom Egypt (TE) acted as the sole provider for decades. Over the last ten years, Egypt's telecommunications infrastructure improved dramatically and its telecommunications sector became one of the fastest-growing sectors in economy.

By the end of 1998, two private mobile operators (Mobinil and Vodafone) were serving a few million mobile users. By 2007, a third mobile operator (Etisalat Egypt) entered the market and the total number of mobile users reached 31 million at the end of the year. Fixed telephone lines showed a slow increase from 2000 to 2007.

Mobinil, Vodafone Egypt and Etisalat Egypt were serving by December 31, 2010 over 78 million mobile users. Even though voice is currently the largest contributor to total revenue, mobile data services account for, according to Pyramid Research, to approximately 9% of total mobile service revenue; a share that is likely to rise in the years to come, spurred by mobile internet adoption. However, and according to the same source, Egypt's broadband market is still significantly underpenetrated with a 5% penetration rate in 2010.

Institutions and Players

Ministry of Communications and Information Technology (MCIT)
  • Established in 1999
  • Promotes a broad liberalization agenda, de-regulation and privatization.

National Telecommunication Regulatory Authority (NTRA)
  • Regulator - Regulates market development and protects public interest
  • Reports directly to the Minister of CIT.
  • Issues licenses and product apporvals.
  • Implements MCIT's technology roadmap.
  • Management of frequency spectrum.
  • Influences pricing and services.
  • Controls dial range allocation.
  • Resolves oprator disputes.

Telecom Egypt
  • Fixed line incumbent.
  • 80% government owned – 20% publicly listed shares.
  • Owns 45% of Vodafone Egypt.
  • Owns 100% of TE data.

3 mobile operators
  • Mobinil, Vodafone, Etisalat.
  • Each represents strong international and regional telecommunication players.
  • Each owns an ISP competing in the fixed broadband arena.
  • All profitable despite competitive pressures and maturing market.

Internet service providers
  • LINKdotNET, TE Data, Raya, NileOnline and EGYNet are Egypt's internet infrasturcture providers.
  • There are over 220 ISPs providing internet dial up, ISDN, and broadband.

Customers and Mobile Penetration
Analysts believed that the telecommunications industry in Egypt reached saturation. However, 2010 witnessed a growth of over 17 million subscribers. Even if the industry is approaching maturity, there is still room for some residual growth in certain segments which is expected to be fueled by innovation and data services. Egypt's population is approaching 80 million; by end of 2010 more than 78 million SIM were in the market, representing a SIM penetration rate of 99.2%. Despite this high rate, we believe that there are regions that remain underpenetrated and therefore offer further growth potential.
Gathered from both Mobinil Data Warehouse and Vodafone Group Press Releases
2011 Expectations
The recent events in Egypt introduced a certain level of economic uncertainty, true for the telecommunications sector as well. In the medium term, we expect a certain normalization of the competitive intensity. The evolution of the business will depend on the speed and manner in which the general economic activity will get "back to normal".

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Mobinil


Mobinil is Egypt's first mobile operator, founded in 1998. Since its inception, it has strived to maintain a strong market position. Honoring the trust of more than 30 million customers, Mobinil is recognized as one of the leading mobile service providers in the region due to the quality of its services and its contributions towards the development of the country. Throughout the years, Mobinil has been honored to receive numerous awards presented by both national and international institutions. Mobinil was recognized for the quality of its operations, the development of its human resources, the transparency of its disclosure practices and investors' relations, and for the reliability of its health and safety systems.

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