26 October 2011

Arab Republic of EgyptMinistry of Communications and Information Technology

26 October 2011

Arab Republic of EgyptMinistry of Communications and Information Technology

Dr Mohamed SalemMinister of Communication & Information Technology

OutlineOutline

ICT policy review

Egypt after January 25th Revolution

ICT role in Egypt is increasing drastically

More Egyptians are now connected

The ICT sector is contributing positively to the economy

ICT positive role in Egypt's development

ICT adopted policies

Egypt's ICT future ahead

EGYPT ICT Policy ReviewEGYPT ICT Policy Review

The study will serve as a basis for setting clear and measurable targets in the next national strategy.

It can help to realize the untapped potential in the Egyptian ICT landscape and maximize the development impact.

The review was completed at the end of 2010, hence it did not incorporate the crucial implications defined by the pivotal role that ICT played in the recent political evolution

EGYPT is ON the Rise !EGYPT is ON the Rise !

Jan25th Revolution has been a major accomplishment in Modern history.

The new "mainstream" Egypt needs to focus on developmental agenda across all directions: political, economic , social , judicial, legislative ,..etc. It needs to establish a concrete framework that would absorb all the new aspirations of the intellectual, well-educated young generation.

Democracy & Freedom constitute the underlying fuel to grow and flourish.

Back to the big pictureBack to the big picture……

The new Egypt is a land that promises Openness, Transparency & Rule of law

Egypt will always fulfill its commitments with the international business community.

Democracy has to prevail.

No democracy without women participation.

The private sector will continue to play an important role in achieving economic goals.

Egypt after 25th Jan 2011Egypt after 25th Jan 2011

Quick major changes in the political regime.

Citizens’ empowerment.

Increase in participation and ownership in debating public policies.

Several attempts to create societal dialogue.

Gradual improvement in security.

Major legislations that will shape a different future.

The ICT sector has had a Leading role in the Egyptian

revolution.

Blogs have increased public awareness concerning freedom

and citizens’ right since the early 2000s.

Social networking websites like the Face book (8.8 million users, September 2011) and Twitter were the main sparks of the revolution.

An increasing number of Egyptians also use the internet to

follow the latest videos, news and all the materials broadcasted

on television.

This was in line the booming mobile internet (7.29 million users, 2010)

and increasing use of smart phones.

Egyptian Egyptian RevolutionRevolutionEnabled

Environment:•Openness •Access

•Diversity•Security

A hybrid between networks of human, social, technical , media & other actors laid the foundation for the Egyptian Revolution…

Increased Internet

freedom & usage

Fixed Telephony Subscribers Mobile telephony Subscribers

Internet Users and Penetration Broadband vs. Narrowband Internet Users

2010-112009-102008-092007-082006-07Indicator47.144.741.136.830.55ICT Sector Revenues (LE Bn)

36.5834.2930.2526.4023.10ICT Sector GDP at constant Prices (LE Bn)

3.04.13.83.53.4Contribution of ICT Sector to real GDP (%)

6.713.314.614.314.1ICT Sector Annual Growth rate (%)

4250(August 2011)

3934 (2010)3470 (2009)2938 (2008)2348 (2007)ICT Operating Companies

212.26  

(August 2011)205 (2010)181.7 (2009)175.1 (2008)162.5 (2007)Number of people Employed  in 

ICT Sector (Thousands) 2000 

(target 2013)1100 (2010)850 (2009)750 (2008)450 (2007)ICT exports ($ Mn)

Growth projections starting 2008 and beyond indicate that Egypt will 

sustain its position as one of the world’s fastest growing ICT economies.

ICT Revenues (billion EGP) ICT Contribution to Real GDP (%)

ICT Growth Rate among the fastest 

growing sectors (%)

ICT Exports (million USD)

In spite of the overall slowdown in the Egyptian

economy after the Egyptian revolution, the ICT

sector has managed to:

Maintain positive growth rates unlike many

other sectors, (6.7% in 2010/2011)

Stay among the fastest growing sectors in

the economy, (2nd highest in 2010/2011)

Prove that it can be a leader for the growth

of the Egyptian economy,

ICT Economic Performance post the RevolutionICT Economic Performance post the Revolution

The ICT sector has a great potential that could lead the

economy, especially in light of the increased freedom and

protection of rights.

* Preliminary figures

Household Use of ICT Private Sector Use of ICT

Government Entities Use of  ICT 

(2010)

ICT Use in Education (Schools)

Increased Usage

ICT Development Indicators...ICT Development Indicators...

ICT Development Indicators... ContICT Development Indicators... Cont’’dd

Graduates from Specialized and 

Professional Training Programs

(Thousand persons)

Number of ICDL Certified Persons (Thousand persons)

Capacity Building

Encourage the liberalization of ICT services and attract foreign

investments, so as to increase growth rate of the sector and create new job

opportunities.

Maximize the use of ICT in a way that would help to improve the level and

quality of services provided to the Egyptian citizen, within a knowledge

society.

Emphasize the importance of international partnerships, so as to support

building a strong ICT industry that aims at exporting to international

markets and increasing job opportunities for the youth.

MCIT has been focusing on some main policies during the past yeaMCIT has been focusing on some main policies during the past years:rs:

Emphasizing the role of public – private partnerships, knowing that both the

public and private entities are partners in Egypt’s ICT development

process.

Expanding the use of broadband services, so as to be reflected on the

economy’s performance.

Stimulate the technological innovation and business leadership of the

Egyptian youth, which gives Egypt a new role in intellectual property

ownership, making use of its growing revenues, within a knowledge

economy.

MCIT has been focusing on some main policies during the past yeaMCIT has been focusing on some main policies during the past years:rs:

Residential Fixed Line Tariff ­

2009 

(USD/month)

Mobile Cellular Prepaid Tariff ­

2009 

(USD/month)

Fixed Broadband Access Tariff ­

2009 

(USD/month)

Fixed Broadband  Price Basket as a % 

of GNI per capita

World Bank

World Bank

World Bank

ITU

MCIT has been liberalizing prices of communication services during the past years. Egypt currently enjoys very competitive prices worldwide….

Review of Telecom Law : Review of Telecom Law : In order to avoid the cut of Internet and mobile communications, a

review of some articles of the Telecommunications Law No. 10 of the year 2003, particularly

Article 76, has started; Such a revision aims at guarantying the freedom of citizens to obtain

the communication and information services with integrity and transparency.

Activation of the EActivation of the E--Signature Law: Signature Law: issued in 2004 supporting e-commerce through securing

Internet as a legally viable medium for online financial activities. The law is considered the

first Egyptian legislation to regulate electronic transactions in Egypt.

Ensure Consumer Protection: Ensure Consumer Protection: Telecom Act (Law # 10/2003) stipulated the formation of the

Consumer Rights Protection Committee (CRPC) to protect the users of telecommunications

services in Egypt. The committee should start as an affiliate to NTRA and then should turn

into a non – governmental organization at a later stage.

Stimulating InnovationStimulating Innovation--Based Economy:Based Economy: Egypt can overcome existing hurdles by finding

creative ways to leapfrog and innovate in ICT and make progress with regard to foreign

investment, job creation, and doing business.

IT Houses National Project: IT Houses National Project: In the Scope of Sinai Development, MCIT Launched the IT

Houses Project Nationwide with focus on the distant and neglected areas especially the

Bedouin and desert areas to establish different types of community services centers for

the benefit of all segments of the society. (September 2011)

Support SMEs in the field of ICT: Support SMEs in the field of ICT: MCIT launched a short and medium-term strategy to

support SMEs in the field of ICT. This includes financial support, deepening and

expanding partnerships with local SMEs through the ministry's projects, creating an

entity to unify all ICT companies to co-ordinate periodically with the Ministry to follow up

on all the companies' problems and requirements. (August 2011)

Cooperation Protocols between MCIT and other Ministries: Cooperation Protocols between MCIT and other Ministries: Projects to provide training

and support to employees, leaders and administrators in different ministries and

governmental bodies. (June 2011)

Such policies aim at increasing the 

investors’

confidence in the ICT 

Egyptian environment, where 

privacy is protected and rights 

are ensured.

MCIT is currently adopting a variety of initiatives to increase ICT role in

Egypt, with special attention to the under developed and neglected areas.

Special focus is given to attracting foreign and domestic investments to the

ICT sector.

Human resources constitute an additional advantage for ICT as Egypt is

enriched by an intelligent, enthusiastic and well – educated young

generation. Besides, Egypt competes globally by its labor cost advantage.

Egypt currently enjoys a more solid political and legal environment that

favors freedom of expression and anti- corruption regulations, paving the

road for a more empowered ICT market.

Egyptians belief in the power of ICT is increasing and hence their will to

develop and enhance its ICT sector.