3G Subscribers in Egypt to Grow Five Fold till 2012 by: Shushmul Maheshwari

Egyptian 3G market, which is mainly operated by three operators, possesses huge potential for future growth. Currently, the penetration level is very less with number of 3G subscribers estimated at less than 1 Million at the end of 2009. According to our research report “Booming Egypt Telecom Market”, countries 3G market is expanding at a significant rate since 2007 and is projected to grow five fold by the end of 2012. Moreover, operators are making huge investment to upgrade existing technology with an aim to increase their ARPUs.

Our report finds that the main reasons for huge investments in the 3G infrastructure by the three mobile operators in the country, is the saturation in existing 2G networks and declining ARPU in the 2G segment. Operators are trying to convince their customers to move into the new 3G services as a way of freeing up 2G capacity and halting the steady erosion of the ARPUs. Besides, aggressive marketing strategy is being adopted by all the three operators to lure subscribers in Egypt.

According to our research report, various equipment manufacturers are playing an important role in developing Egypt’s 3G network. Nokia Siemens Networks and Huawei have been developing Mobinil’s 3G networks while Alcatel-Lucent and Motorola are cooperating with Mobinil to establish its 2G network. Furthermore, Cisco Systems and Ericsson have had their part in the development and enhancement of the company’s network infrastructure.

Apart from 3G, we have found that Egypt’s mobile market has been growing at a fast pace and is projected to experience smart growth in the coming years. Growth in mobile telephony has been due to an increase in the low-income customer segment over the years. Additionally, stiff price competition between the mobile operators in the country and availability of pre-paid and installment payment options will fuel the segment.

“Booming Egypt Telecom Market” provides analysis of Egypt’s telecommunication industry with detail analysis of future potential in different industry segments. The report includes mobile market, fixed line, internet, broadband, 3G, and WiMax market analysis and examines telecom infrastructure in Egypt. The report aims to provide the most accurate outlook of the telecom industry in Egypt.