Egypt - Telecommunication Services: An emerging market (Strategy, Performance and Risk Analysis)

Egypt - Telecommunication Services: An emerging market (Strategy, Performance and Risk Analysis)

Summary

Mobile subscriptions increased at a 0.2% CAGR during 2012-2016 and is expected to grow at a 4.3% CAGR over 2016-2021. As a result, mobile subscriptions penetration is expected to increase from 104.0% in 2016 to 116.8% by 2021. Growth is attributed to an increase in mobile phone adoption together with individuals holding multiple subscriptions. Mobile service revenue accounted for an 84.2% share of total telecom service revenue and is expected to increase to 87.7% by 2021. Mobile revenue declined at a -4.6% CAGR during 2012-2016 but is expected to increase at a 5.4% CAGR over 2016-2021 due to demand for mobile data services.

MarketLine’s Premium industry reports provide a comprehensive market view including sections on: industry risk & reward, key industry trends and drivers, industry SWOT analysis, industry benchmarking to compare key performance indicators with regional and global markets, competitive landscape, and innovation.

Key Highlights

Vodafone Egypt enjoys the leadership position for mobile

Vodafone Egypt’s market share rose from 41% in 2012 to 42% in 2016, with subscriptions posting a CAGR of 0.4%, from 39.8 million in 2012 to 40.5 million in 2016. the company also registered the lowest churn rate of 27.8% in 2016.

Low broadband penetration

In 2016, 41.2% of the total population were internet users however only 5.2% had internet accounts. The total internet users grew at a CAGR of 5.4% during the review period and will post a forecast-period CAGR of 5.2% to reach 53..3% in 2021. Telecom Egypt plans to spend US$400 million on fiber networks to drive broadband connectivity.

Infrastructure investment

Infrastructure is one of the major requisite for technology growth and expansion. The government allocated US$463.4 million to infrastructure in 2015, of which the majority was channeled to the fiber network. Telecom Egypt plans to spend more than US$400 million in 2015, on building a fiber network to encourage broadband penetration. A new unified license for the provision of telecom services is a key investment opportunity and bidding has attracted interest from potential new entrants such as China Telecom Corp. and Saudi Telecom Co.

Scope

• Risk/Reward Index - enables you to assess the risks and potential rewards of investing in the Egypt Telecommunications market in comparison with other Middle East and African countries.
• Industry Snapshot and Industry View - Key Telecommunications Industry Statistics including fixed/mobile revenue, subscriptions, churn, market share, and ARPS are analyzed to reveal the key issues and trends driving market performance in the Egypt Telecommunications market.
• Industry SWOT Analysis - Discover the Strengths, Weaknesses, Opportunities and Threats impacting market performance and investment in the Egypt Telecommunications market.
• Industry Benchmarking - Benchmark how the Egypt Telecommunications market is performing compared to regional and global markets in terms of fixed or mobile revenue, subscriptions, ARPS, penetration, and usage to gauge potential for growth or market entry.
• Competitive Landscape - Analyze and compare the performance of the leading players in the Egypt Telecommunications market by business segment on metrics such as such as churn, ARPU, and subscriber and revenue growth.

• Can foreign investments into Telecommunications help revive Egypt’s economy?
• Have technological advances drastically changed the face of the Telecommunications industry?
• How is the market performing in terms of: Revenues, Subscribers, ARPU, and Customer Churn?
• How risky is it to invest in the Egypt Telecommunications industry compared to other Middle East and African countries?
• What is driving the performance of key industry segments such as Voice, Data, Prepaid, Postpaid, Broadband, and IPTV?
• Who are the leading players in the Egypt Telecommunications industry and how does their performance compare?
• What trends are being witnessed within the Egypt Telecommunications industry?
• How will the breakdown for mobile connection technologies look by 2021?
• What are the Egypt Telecommunications industry’s Strengths and Weaknesses and what Opportunities and Threats does it face?
• How has the financial deals landscape changed in 2015 and 2016?