The overall outlook for the Egyptian telecoms sector remains positive with significant organic growth prospects stillavailable in the mobile sector, and the 3G/4G segment, in particular. We have made some positive forecast revisions to our outlookbased on promising market updates from 2017.The mobile market has recovered from the losses seen in 2014 and 2015, with threeoperators combined adding an impressive 3.1mn subscribers in 2016 and an additional 6.33mn subscribers in 2017. Telecom Egypt(TE) and three established players, Orange, Vodafone and Etisalat Misr, all launched 4G LTE services in H217 and TE became thefourth national operator. Looking ahead we expect the market dynamics to become even more competitive with TE exerting furtherpressures on the three carriers. Furthermore, the innovative trends will get extra momentum as operators look to upsell their 4G LTEdata services to a low-income consumer in the face of stifling competition.