Arab Advisors Group
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Egypt's Internet subscribers will grow substantially, but consolidation will diminish the number of its ISPs.
Wednesday, June 5, 2002

A newly released report from the Arab Advisors Group (www.arabadvisors.com) fully analyzes the Egyptian Internet and Datacomm market. The Arab Advisors Groups projects Egypt's Internet subscribers to 680,000 accounts by 2006, up from 120,000 in 2001.

June 5, 2002 -

The Internet market in Egypt, has been witnessing a steady growth. This is attributed to a number of factors among which is the Ministry of Telecommunication and Information Technology's (MCIT) policy to liberalize the market and create competition. There are currently more than 13 Internet and Datacomm providers and some 65 small and virtual ISPs.

A new report, entitled Egypt Internet and Datacomm Landscape Report 2002, was released to the Arab Advisors Group's (www.arabadvisors.com) Strategic Research Service subscribers in June 2002. The 51-pages report is the culmination of painstaking primary research over more than two months by Arab Advisors Group's analysts. The report found that Egypt's "free Internet model" will be a major force behind consolidation and a market shakeout amongst Egyptian ISPs.

"We project Egypt to have 680,000 Internet accounts in 2006, a penetration rate of 0.93%, up from 0.18% in 2001. Our definition of "Internet Accounts" includes regular users of the free Internet model" Shahin Shahin, Arab Advisors Group analyst said. "In 2006, Internet users are projected to exceed 2.6 million in Egypt, up from an estimated 540,000 in 2001. While the subscribers and users will grow, we see strong signs of an impending consolidation and shakeout phase in the country that will reduce the number of infrastructure-based "real" ISPs to 9 by 2006. Privately branded virtual ISPs, promoted by major brand names in Egypt in association with the big ISPs, are expected to increase to 145 by 2006," he added. Internet access revenues in Egypt will reach US$ 81.5 million in 2006 up from US$ 19.1 million in 2001.

"With this Egypt report, the Arab Advisors has already fully examined and analyzed the communications and Internet and datacomm markets in 16 major Arab markets", Jawad Abbassi, President of Arab Advisors Group said. "Our team of analysts, stationed in the region, has produced more than 90 country reports and research notes to date that were received by the global vendors, operators and investment houses that constitute Arab Advisors Group's subscriber base". New subscribers to the Arab Advisors Group Strategic Research Service receive all previously released reports in addition to all reports that will be released in the year.

The Egypt Internet and Datacomm Landscape Report 2002 includes 5-year historical figures on 40 plus indicators of the communications market as well as 5-year projections (till 2006). The report's table of content can be downloaded in PDF format from Arab Advisors Group's web page (www.arabadvisors.com). The report analyses the operations of all the companies in the market and presents detailed profiles of their operations and strategy.

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