Qualifying, Quantifying and Meeting the Challenge of Internet Costs

1
Qualifying, Quantifying and Meeting the Challenge
of Internet Costs

• Dr. Olfat Abd El Monsef
• NTRA

2
Policy

• Regulatory environment Infrastructure
  Development
• Universal Access
• ICT National Initiatives
• The Future

3
Regulatory environment Infrastructure
Development

• Liberalization of Telecom Sector
• PPP
• Present Status
• Fixed Network
• Mobile Operators
• Internet and Data Service Providers
• International Gateways and Cables Landing

4
Universal Access

• Universal Service Programs
• Objective
• Coverage of remote and underserved areas
• Increase penetration for covered areas
• Public access, payphones, telecenters
• Affordable Access

5
ICT National Initiatives

• Free Internet Initiative
• PC to Every Home
• IT Clubs
• Broadband Initiative

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Free Internet Initiative

• Objective Introduction, awareness availability
  of the Internet nationwide, paving the road for
  broadband nationwide.
• Date Launch Jan. 2002

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Free Internet Initiative

• Model
• Subscription-Free Internet Services Every Phone
  Owner is Eligible
• Cost of Local Phone Calls (1.23 EGP/hr 0.2
  per hour)
• Special Numbering Prefix 0777-0707
• Public Private Partnership MCIT and TRA with
  Telecom Egypt and Local Private-Sector ISPs
• Bill Collected with Regular Phone Bills
• Offloading / revenue-sharing mechanism
• Increased Competition Improved QoS - Reduced
  Costs - Utilization Growth

8
PC for every home

• Objective Affordable High-Quality Local-Brand
  PCs
• Date December 2002
• Phase II Egypt 2010 - Nation Online Initiative

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PC for every home

• Model
• Public Private Partnership MCIT Telecom Egypt
  Misr Bank Local private sector Companies
• Every Phone Owner is Eligible
• Paid on Monthly Installments with Phone Bills
  (15 20 models) financed by the banking sector
• Suppliers Accredited and Samples Approved by MCIT
• Market stimulation arises interest in Local
  Manufacturing

10
IT Clubs

• Objective Introduction, awareness availability
  of the Internet nationwide in least developed
  areas.
• Date Started 2002
• Model PPP

11
Broadband Initiative

• Objective increasing broadband penetration and
  promoting higher speeds connections paving the
  road for e-content market and to Egypt's
  information society
• Date Launched May 2004

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Broadband Initiative

• Model
• Partial Local loop unbundling (line sharing) Q2
  2002 yet very low numbers of BB subscribers
• Public-Private-Partnership MCIT and TRA with
  Telecom Egypt and Local Private-Sector ISPs
• Price reduction, effective rollout and effective
  end-user installation in addition to a nationwide
  brandless marketing campaign
• Promoting ADSL higher speeds by getting their
  prices down (currently 256kbps -gt EGP 95 other
  limited packages that starts as low as 45 EGP)

13
Present Status

• Internet users 7.7 millions
• International BW 15 Gbps
• ADSL subscribers 355 Thousands
• PC sales within the initiative 155 Thousands
• IT Clubs 1550 nationwide

14
The Future

• Development of Local Content
• Peering and Hosting
• Convergence of Networks and Services
• Effect of telecom-media convergence on
  penetration

15

• Thank You