Arab Advisors Group
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"Free Internet" in Egypt by the end of the year
Sunday, June 24, 2001

The Arab Advisors Group analyses the Free Internet model to be introduced in Egypt by the end of the year
June 24, 2001 -
A new research note released by Arab Advisors Group a specialized strategic research company on telecommunication, Internet, and technology in the Arab world, analyses the free Internet model to be introduced in Egypt by the end of this year. According to information from ISPs in Egypt and the Egyptian Ministry of Communications and Information Technology, the research note which was released to subscribers of Arab Advisors Group Strategic Research Service, and is available for online purchase through the company's website http://www.arabadvisors.com/ explains that the free Internet model is not really free.
"It is basically, a revenue sharing model between the various ISPs and Telecom Egypt." Shahin Shahin, an Arab Advisors group analyst, said
The research note also highlights the advantages of the free Internet model for end users. Under the free Internet plan the total cost of connecting to the Internet will be reduced by as much as 59% for heavy users.
According to the Arab Advisors Group's Research Note, ISPs will dig up higher revenues from the same usage level. Obviously Telecom Egypt will be giving up a great deal of its potential revenues to the end users and ISPs. However, an expected higher demand and hence traffic amongst Internet community could surely make up for this.
" The paradox that will result from introducing Free Internet in Egypt is that ISPs will start to encourage users to connect for longer hours in order to increase their revenues, whereas in the unlimited account current scheme, ISPs prefer shorter connection hours." explained Shahin Shahin.
Shahin pointed out that under the new scheme competition among ISPs would be tougher as it will be limited to the quality of their services, their marketing strategy, and their brand name recognition.

Arab Advisors Group concludes in its Research Note that the introduction of the Free Internet model in Egypt will result in a boost in the number of Internet users in the country and an increase in the revenues of the Egyptian ISPs. 

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