Broadband drives Egypt growth

Egypt's broadband development is key to revenue generation in the country's telecommunications sector, according to a Pyramid Research report, states IT News Africa.

According to the research firm, the Egyptian telecoms sector generated $6.4 billion in revenue last year and has grown by nearly 25% in the past two years.

Pyramid suggests the country will remain one of the fastest growing markets in Africa and the Middle East, says Rapid TV News.

This is mainly due to the promise of increased mobile broadband penetration and value-added services, such as mobile TV and mobile banking, that high-speed Internet access can bring, according to Pyramid.

“As a result of the recent political turmoil that led to the overthrow of president Mubarak's regime, telecom use increased and was heavily utilised to gather the masses,” says Hussam Barhoush, senior analyst, Pyramid.

Mobile penetration jumped from 23% in 2006, the year before the entry of a third player, to 78% by the end of 2010. Pyramid expects it to exceed 100% by the end of 2015.

BI Middle East sates that the cellular sector remains the most lucrative and revenue-generating front in the Egyptian market.

Barhoush notes: "Growth in data is outpacing growth in voice. This is true for the fixed and mobile sectors. In both cases, broadband is the key driver, with adoption of DSL and mobile broadband increasing steadily.”