Egypt: 4G Rollout and Issuance of Virtual Fixed Licenses to Significantly Boost Competition
In 2016, Egypt generated total telecom service revenue of US $4.7Bn, a decline of 9.2% over 2015, due to currency devaluation. Mobile voice continued to be the largest revenue-contributing segment and accounted for 60.3% of total service revenue in 2016. Pay-TV, mobile data and fixed Internet will be the top three fastest-growing segments over the forecast period, recording CAGRs of 8.9%, 7.0% and 6.8%, respectively, during 2016-2021, as demand for these services continues to increase.
Total telecom market in Egypt generated US$4.7bn in service revenue in 2016. It is expected that total revenue to record a CAGR of 4.3% during 2016-2021 to reach US$5.8bn by 2021. The expected growth rate will be faster than that of Kenya (4.2%), the UAE (3.5%) and Saudi Arabia (1.6%) but slower than Morocco (4.5%). While mobile voice will remain the largest revenue contributor, it will be mainly mobile data, fixed broadband and pay-TV services that will drive overall market growth in the coming years and fixed telecom services revenue (including voice, Internet and pay-TV) to grow at a 1.1% CAGR over 2016-2021, to generate US$0.9bn in 2021. This growth will be driven by the fixed broadband and pay-TV segments, supported by improving fixed broadband networks.
The top two operators, Orange Egypt and Vodafone Egypt, offering mobile and fixed Internet services, accounted for 57.7% of total telecom service revenue in Egypt in 2016. Vodafone Egypt will continue to dominate the Egyptian telecom market through 2021.
It is expected that 3G subscriptions in Egypt to grow at a CAGR of 11.0% between 2016 and 2021, to reach 68.6m or 57.3% of total mobile subscriptions by year-end 2021. Introduction of 4G network services in 2017 will boost telecom market growth.
The issuance of virtual fixed licenses to the main MNOs will allow them to compete more evenly across fixed and mobile segments and to offer integrated fixed and mobile services. Expansion of fiber-optic cable by Telecom Egypt will also open significant opportunities for network vendors.
The report Egypt: 4G Rollout and Issuance of Virtual Fixed Licenses to Significantly Boost Competition provides an executive-level overview of the telecommunications market in Egypt today, with detailed forecasts of key indicators up to 2021. Furthermore, it provides detailed analysis of the near-term opportunities, competitive dynamics and evolution of demand by service type and technology/platform across the fixed telephony, broadband, and mobile, as well as a review of key regulatory trends.
Specifically, this report enables the following -
Regional context: Telecom market size and trends in Egypt compared with other countries in the region.
The regulatory environment and trends: A review of the regulatory setting and agenda for the next 18-24 months as well as relevant developments pertaining to spectrum licensing, national broadband plans, number portability and more.
A demand profile: Analysis as well as historical figures and forecasts of service revenue from the fixed telephony, broadband, mobile voice, and mobile data markets.
Service evolution: A look at changes in the breakdown of overall revenue between the fixed and mobile sectors and between voice, data and video from 2016 to 2021.
The competitive landscape: An examination of key trends in competition and in the performance, revenue market shares and expected moves of service providers over the next 18-24 months.
In-depth sector analysis of fixed telephony, broadband, mobile voice, and mobile data services: A quantitative analysis of service adoption trends by network technology and by operator, as well as of average revenue per line/subscription and service revenue through the end of the forecast period.
Companies mentioned in this report: Orange Egypt, Vodafone Egypt, Telecom Egypt, Etisalat Egypt, LINKdotNET, OSN, beIN, Etisalat Misr, TE Data.
The overall telecom service revenue in Egypt will grow at a CAGR of 4.3% during 2016-2021, mainly driven by growth in mobile data, fixed broadband and pay-TV segments.
Mobile revenue will account for 84.6% of the total telecom revenue in 2021; mobile data will witness a CAGR of 6.8% during 2016-2021.
The top two operators, Orange Egypt and Vodafone Egypt, accounted for 57.7% share of overall service revenue in 2016. We expect competition to intensify as operators acquire unified licenses from the NTRA, which allows them to offer both mobile and fixed-line services.
Operators will focus on improved service offerings at competitve prices to maintain their market position.
Reasons to buy
This Country Intelligence Report offers a thorough, forward-looking analysis of Egypt's telecommunications markets, service providers and key opportunities in a concise format to help executives build proactive and profitable growth strategies.
Accompanying GlobalData’s Forecast products, the report examines the assumptions and drivers behind ongoing and upcoming trends in Egypt's mobile communications, fixed telephony, broadband markets, including the evolution of service provider market shares.
With more than 20 charts and tables, the report is designed for an executive-level audience, boasting presentation quality.
The report provides an easily digestible market assessment for decision-makers built around in-depth information gathered from local market players, which enables executives to quickly get up to speed with the current and emerging trends in Egypt's telecommunications markets.
The broad perspective of the report coupled with comprehensive, actionable detail will help operators, equipment vendors and other telecom industry players succeed in the challenging telecommunications market in Egypt.