Egypt aims to spearhead telecom`s reform in Africa

By IDC for BMI-TechKnowledge
Johannesburg, 15 Jun 2001

According to the latest BMI-T Communication Technologies Handbook, which will be launched at the end of June, Egypt is fast becoming a country that is leading the way in African telecommunications reform and liberalisation.

BMI-T states that the role of private investment in key infrastructure areas in the Egyptian market has increased significantly in recent months. "Mobile phone concessions have been sold to private firms, and ports and port service have been opened to private investors," says Haydon Saulez, GM of local telecommunications and IT research house, BMI-TechKnowledge.

"The Egyptian governments increasing receptivity to private investment in infrastructure will provide expanded business opportunities from global players," says Saulez.

Although the privatisation of Telecom Egypt which started in January 2000 has put on hold due to unfavourable local and international stock market conditions, the company hopes to continue the process in the coming months by selling 33% of the company to local investors while the remaining 67% is aimed at international investors. Other licences that are available are for public payphones and value-added services (paging, Internet, VPNs and VSAT), which Egypt is hoping will attract more international investment.

Telecom Egypt has already claimed a stake in Africa One, a $1.9 billion project involving AT&T, Global Crossing and Lucent, that is placing a fibre optics ring around Africa, and which will be ready by 2002.

Industry experts state that Africa One will create a sophisticated telecommunications infrastructure that will boost Africa`s economy, create trade and investment opportunities for multinational firms and enhance the competitiveness of African nations. This in turn will afford businesses in Africa "access on an international basis to technology, markets, transport, finance and information about products and resources.

Egypt has embarked on a fairly robust and aggressive programme of economic liberalisation and development, including the signing of trade and tariff agreements in the region and beyond. The government aims to create 500 000 new jobs with its current programme, based largely on oil, gas, construction and telecommunications.

For more information on the BMI-T Communications Handbook, contact Anita Mathews on (011) 803 6412 or e-mail on Anita@bmi-t.co.za

BMI-TechKnowledge Group (BMI-T)

BMI-TechKnowledge (BMI-T) is Africa `s leading supplier of market intelligence and knowledge-based consulting in the areas of IT, telecommunications and the Internet.

Formed over 14 years ago, BMI-T provides its clients with an unmatched and comprehensive range of unbiased market knowledge. BMI-T conducts more than 20 000 market research business-to-business and business-to-consumer interviews and more than 100 focus group projects every year.

BMI-T has an active ongoing research publications business that has consistently published research-based market analysis covering many facets of the IT, telecommunications and emerging media sectors. This knowledge base provides the platform on which we build our customised research and consulting, including assignments such as market entry strategies, product entry strategies, channel and distribution analysis and African research.

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