To control their spending, a quarter of Egyptian GSM subscribers still use the payphone service.

February 09, 2006

A new Arab Advisors Group major survey of GSM users across Egypt avails deep insights into the usage habits of this predominately prepaid market. The survey revealed that while a majority of GSM users (75.5%) are satisfied with their existing mobile operators, a substantial percent (close to 36.1%) will consider switching to a another operator if it offers better rates and quality of services.

Of the total 700 respondents, 36.1% would consider switching their current mobile operator if a new operator is available in the market with another 39.7% saying that they may consider changing operators. Their decision to change would depend on better rates and packages (85%), and better quality of service (57%). “This clearly shows that the market is very price conscious which, the Arab Advisors Group believes, is good news for the profitable incumbents who are always better positioned to offer lower rates if needed.” Wrote Ms. Serene Zawaydeh, a consultant from Arab Advisors Group, in the report.

A new major report, “Egypt GSM Users Survey 2006” was released by the Arab Advisors Group on February 9, 2006. This survey report can be purchased from the Arab Advisors Group for only US$ 3500 for subscribers to Arab Advisors Strategic Research Services. Non-Subscribers to Arab Advisors Groups Strategic Research Services can order the report for US$ 4500.

The 103-page report, which has 174 detailed exhibits, provides the results of a major comprehensive survey of the GSM services usage patterns and habits of GSM subscribers across Egypt’s areas. The survey fieldwork was conducted between January 15, 2006 and February 1, 2006. The report provides statistical analysis of the results and insightful detailed cross tabulations. Please contact the Arab Advisors Group to get a copy of the report’s Table of Contents and the survey questions.

Arab Advisors Group’s major analytical survey of Egypt’s main cities’ population was scientifically done. The survey involved face to face interviews with 700 Egyptian nationals from different households in Cairo, Alexandria, Delta and Upper Egypt, selected randomly in a manner proportionate to the population size of the different areas. Respondents were above 15 years old and were GSM service users. This random survey is of the current GSM users in Egypt, and not the total population of the country.

The survey sample is geographically distributed is as follows: Greater Cairo (42%), Alexandria (15%), Delta (25%) and Upper Egypt (18%). The random survey has a 99% confidence level with a less than 5% margin of error.

The Arab Advisors Group divided the survey questionnaire into main sections. The sections provide a balanced focus on collecting data on the following areas:

- General Demographic information
- Communication methods used
- GSM subscription and usage patterns
o Mobile operators and plans
o Switching operators and plans
o Services used
o Cellular handsets
o GSM data services
o SMS use
o MMS use
o Mobile content
o 3G services
o Roaming and international calls
o Perception of mobile operators
- Internet use

Investing in this survey can count towards attending Arab Advisors’ third annual Media and Telecoms Convergence Conference on June 6 & 7 2006. More information on the conference can be seen at http://www.arabadvisors.com/Convergence/schedule.htm Alternatively contact the Arab Advisors Group for full information on the conference, agenda and sponsorship opportunities.

Judeh Siwady, Arab Advisors Group Senior analyst noted that “The survey revealed that Mobile users in Egypt also extensively use the fixed line with a substantial percentage (26%) still using payphones as well. This is possibly to control the costs of the GSM service. Some 93% of the GSM users in Egypt have a fixed line at home. 68% of the respondents use the fixed line at home for local calls only, while only 3% use it for local, international and direct (national calls).”

The survey also revealed that the most widely used prepaid plans in Egypt are MobiNil’s ALO Magic and Vodafone El Asly. In the Delta region as well as in Greater Cairo, most respondents buy their recharge cards mostly from operators’ branches and shops (86.4% and 75.4% respectively). In Upper Egypt, 83.2% of prepaid GSM users buy recharge cards from shops of operators’ dealers.

The Arab Advisors Group’s team of analysts in the region has already produced close to 520 reports on the Arab World’s communications and media markets. The reports can be purchased individually or received through an annual subscription to Arab Advisors Group’s (www.arabadvisors.com) Strategic Research Services (Media and Telecom). To date, Arab Advisors Group has served close to 355 global and regional companies by providing reliable research analysis and forecasts of Arab communications markets to these clients.