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Egyptian Mobile Market All Set for Growth
May 05, 2010

The flourishing mobile market in Egypt owes the credit to its cost saving consumers and the untapped potential it has stored among various other factors pushing it to unprecedented heights.

As per the data from the communications ministry, the mobile phone subscriptions in Egypt in the month of February this year increased by 642,000 to 56.49 Million. In January, the number of mobile phone subscriptions was 55.848 Million, according to the news published by Reuters.

Moreover, even though these figures add up to around 72% penetration rate, industry analysts and executives estimate that nearly 20-25% of the Egyptian market is comprised of second phones.

The Egypt mobile phone market is showing an upward growth trend as it holds ample growth opportunities. However, the penetration rates in Saudi Arabia and the UAE exceed 100% as compared to the Egypt’s market penetration.

Besides, call rates even from pre-paid phones is remarkably low in Egypt. As a result, people in low-income group can afford to use mobile phones. Egypt is not an affluent nation where the consumption is conspicuous, or where there are lavish spenders. Middle class Egyptians are big savers. This makes the cost factor among most crucial factors for the growth of the sector.

Furthermore, the competitiveness factor amongst mobile service providers too has an optimistic impact on the industry. In an attempt to strengthen the coverage of the 2G/3G services offered by them to remote Egyptian areas, mobile operators have been spending huge amounts.

As the telecom infrastructure of the country is developing at a rapid pace, the Egypt mobile market will experience further reduction in the tariff and will enjoy the launch of more pioneering service packages like free Internet access or free e-mailing service, thereby encouraging more and more Egyptians to subscribe for mobile telephony services.

According to a market research report titled “Booming Egypt Telecom Market” by RNCOS, the number of mobile subscription is expected to touch 90 Million by the end of 2012, with the penetration exceeding 100%.

A vast subscriber base will drive the demand for associated consumer products like the mobile handsets and accessories.

According to a Research Analyst at RNCOS, “To accomplish the growth target, the operators need to foresee competition and completely rule over the minds of critical population to gain competitive advantage. As far as growing avenues and scope are concerned, mobile operators need to expand and broaden the horizons of their business to include and offer the packages and utilities far beyond the routine services.”

Related Market Research Reports:
Nigeria Telecom Sector Analysis
Kenya Telecom Sector Analysis
Indian Telecom Analysis (2008-2012)