Arab Republic of Egypt
Ministry of Communications and
Information Technology
26 October 2011
Arab Republic of Egypt
Ministry of Communications and
Information Technology
Dr Mohamed Salem
Minister of Communication & Information Technology
26 October 2011
Outline
 ICT policy review
 Egypt after January 25th Revolution
 ICT role in Egypt is increasing drastically
 More Egyptians are now connected
 The ICT sector is contributing positively to the economy
 ICT positive role in Egypt's development
 ICT adopted policies
 Egypt's ICT future ahead
EGYPT ICT Policy Review

The study will serve as a basis for setting clear and
measurable targets in the next national strategy.

It can help to realize the untapped potential in the
Egyptian ICT landscape and maximize the development
impact.

The review was completed at the end of 2010, hence it
did not incorporate the crucial implications defined by the
pivotal role that ICT played in the recent political
evolution
EGYPT is ON the Rise !

Jan25th Revolution has been a major accomplishment
in Modern history.

The new "mainstream" Egypt needs to focus on
developmental agenda across all directions: political,
economic , social , judicial, legislative ,..etc. It needs
to establish a concrete framework that would absorb
all the new aspirations of the intellectual,
well-educated young generation.

Democracy & Freedom constitute the underlying fuel
to grow and flourish.
Back to the big picture…
 The new Egypt is a land that promises
Openness, Transparency & Rule of law
 Egypt will always fulfill its commitments with
the international business community.
 Democracy has to prevail.
 No democracy without women participation.
 The private sector will continue to play an
important role in achieving economic goals.
Egypt after 25th Jan 2011

Quick major changes in the political
regime.

Citizens’ empowerment.

Increase in participation and ownership
in debating public policies.

Several attempts to create societal
dialogue.

Gradual improvement in security.

Major legislations that will shape a
different future.
 The ICT sector has had a Leading role in the Egyptian
revolution.
 Blogs have increased public awareness concerning freedom
and citizens’ right since the early 2000s.
 Social networking websites like the Face book (8.8 million users,
September 2011)
and Twitter
were the main sparks of the
revolution.
 An increasing number of Egyptians also use the internet to
follow the latest videos, news and all the materials broadcasted
on television.
 This was in line the booming mobile internet (7.29 million users, 2010)
and increasing use of smart phones.
 A hybrid between networks of human, social, technical , media &
other actors laid the foundation for the Egyptian Revolution…
Enabled
Environment:
•Openness
•Access
•Diversity
•Security
Egyptian
Revolution
Increased
Internet
freedom &
usage
Fixed Telephony Subscribers
Mobile telephony Subscribers
Internet Users and Penetration
Broadband vs. Narrowband Internet Users
Indicator
2006-07
2007-08
2008-09
2009-10
2010-11
ICT Sector Revenues (LE Bn)
30.55
36.8
41.1
44.7
47.1
ICT Sector GDP at constant Prices (LE Bn)
23.10
26.40
30.25
34.29
36.58
Contribution of ICT Sector to real GDP (%)
3.4
3.5
3.8
4.1
3.0
ICT Sector Annual Growth rate (%)
14.1
14.3
14.6
13.3
6.7
ICT Operating Companies
2348 (2007)
2938 (2008)
3470 (2009)
3934 (2010)
4250
(August 2011)
Number of people Employed in ICT Sector (Thousands) 162.5 (2007)
175.1 (2008)
181.7 (2009)
205 (2010)
212.26 (August 2011)
ICT exports ($ Mn)
450 (2007)
750 (2008)
850 (2009)
1100 (2010)
2000 (target 2013)
Growth projections starting 2008 and beyond indicate that Egypt will sustain its position as one of the world’s fastest growing ICT economies.
ICT Revenues (billion EGP)
ICT Contribution to Real GDP (%)
ICT Growth Rate among the fastest growing sectors (%)
ICT Exports (million USD)
ICT Economic Performance post the Revolution
 In spite of the overall slowdown in the Egyptian
economy after the Egyptian revolution, the ICT
sector has managed to:

Maintain positive growth rates unlike many
other sectors, (6.7% in 2010/2011)

Stay among the fastest growing sectors in
the economy, (2nd highest in 2010/2011)

Prove that it can be a leader for the growth
of the Egyptian economy,
* Preliminary figures
The ICT sector has a great potential that could lead the
economy, especially in light of the increased freedom and
protection of rights.
ICT Development Indicators...
Increased Usage
Household Use of ICT
Private Sector Use of ICT
Government Entities Use of ICT (2010)
ICT Use in Education (Schools)
ICT Development Indicators... Cont’d
Capacity Building
Graduates from Specialized and Professional Training Programs
(Thousand persons)
Number of ICDL Certified Persons (Thousand persons)
MCIT has been focusing on some main policies during the past years:

Encourage the liberalization of ICT services and attract foreign
investments, so as to increase growth rate of the sector and create new job
opportunities.

Maximize the use of ICT in a way that would help to improve the level and
quality of services provided to the Egyptian citizen, within a knowledge
society.

Emphasize the importance of international partnerships, so as to support
building a strong ICT industry that aims at exporting to international
markets and increasing job opportunities for the youth.
MCIT has been focusing on some main policies during the past years:

Emphasizing the role of public – private partnerships, knowing that both the
public and private entities are partners in Egypt’s ICT development
process.

Expanding the use of broadband services, so as to be reflected on the
economy’s performance.

Stimulate the technological innovation and business leadership of the
Egyptian youth, which gives Egypt a new role in intellectual property
ownership, making use of its growing revenues, within a knowledge
economy.
MCIT has been liberalizing prices of communication services during the past years. Egypt currently enjoys very competitive prices
worldwide….
Residential Fixed Line Tariff ­ 2009 (USD/month)
World Bank
Mobile Cellular Prepaid Tariff ­ 2009 World Bank
(USD/month)
Fixed Broadband Access Tariff ­ 2009 World Bank
(USD/month)
Fixed Broadband Price Basket as a % ITU
of GNI per capita

Review of Telecom Law : In order to avoid the cut of Internet and mobile communications, a
review of some articles of the Telecommunications Law No. 10 of the year 2003, particularly
Article 76, has started; Such a revision aims at guarantying the freedom of citizens to obtain
the communication and information services with integrity and transparency.

Activation of the E-Signature Law: issued in 2004 supporting e-commerce through securing
Internet as a legally viable medium for online financial activities. The law is considered the
first Egyptian legislation to regulate electronic transactions in Egypt.

Ensure Consumer Protection: Telecom Act (Law # 10/2003) stipulated the formation of the
Consumer Rights Protection Committee (CRPC) to protect the users of telecommunications
services in Egypt. The committee should start as an affiliate to NTRA and then should turn
into a non – governmental organization at a later stage.

Stimulating Innovation-Based Economy: Egypt can overcome existing hurdles by finding
creative ways to leapfrog and innovate in ICT and make progress with regard to foreign
investment, job creation, and doing business.
 IT Houses National Project: In the Scope of Sinai Development, MCIT Launched the IT
Houses Project Nationwide with focus on the distant and neglected areas especially the
Bedouin and desert areas to establish different types of community services centers for
the benefit of all segments of the society. (September 2011)
 Support SMEs in the field of ICT: MCIT launched a short and medium-term strategy to
support SMEs in the field of ICT. This includes financial support, deepening and
expanding partnerships with local SMEs through the ministry's projects, creating an
entity to unify all ICT companies to co-ordinate periodically with the Ministry to follow up
on all the companies' problems and requirements. (August 2011)
 Cooperation Protocols between MCIT and other Ministries: Projects to provide training
and support to employees, leaders and administrators in different ministries and
governmental bodies. (June 2011)
Such policies aim at increasing the investors’ confidence in the ICT Egyptian environment, where privacy is protected and rights are ensured.
 MCIT is currently adopting a variety of initiatives to increase ICT role in
Egypt, with special attention to the under developed and neglected areas.
 Special focus is given to attracting foreign and domestic investments to the
ICT sector.
 Human resources constitute an additional advantage for ICT as Egypt is
enriched by an intelligent, enthusiastic and well – educated young
generation. Besides, Egypt competes globally by its labor cost advantage.
 Egypt currently enjoys a more solid political and legal environment that
favors freedom of expression and anti- corruption regulations, paving the
road for a more empowered ICT market.
 Egyptians belief in the power of ICT is increasing and hence their will to
develop and enhance its ICT sector.