Market Trends of Egypt Telecom Industry
This section covers the major market trends shaping the Egypt Telecom Market according to our research experts:
Rising demand for Fixed Broadband Services
- Fixed broadband penetration will increase during the forecast period, driven by ongoing efforts by the government to expand fixed broadband coverage and services across the country, particularly in rural areas.
- Government authorities are working with private telecom service providers to expand their broadband services. For Instance, Egypt's National Telecom Regulatory Authority (NTRA) signed a Memorandum of Understanding (MoU) with the Egyptian Competition Authority (ECA) to form a permanent joint committee that will develop a system for regulating free competition in the Egyptian telecom market. Such a government's timely initiative will further support the growth of the telecom market.
- Key players in the telecom market are expanding their broadband networks. For instance, Telecom Egypt has announced it will roll out a new subsea cable system around Africa by next year called Hybrid African Ring Path (HARP). HARP routes will connect the landing points within South Africa, Europe, and Egypt.
- Further key players in the market are planning to shift from coper-based broadband services to fixed fiber-based broadband services. According to Ookla Speedtest Global Index, Egypt ranked 92nd with a median fixed broadband download speed of 43.31 Mbps in October this year.
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Rising demand for OTT and PayTv Services
- Pay-TV services revenue will drop over the next five years because of a steady decline in direct-to-home (DTH) subscriptions and emerging competition from over-the-top (OTT) service providers.
- Increasing mobile subscribers will significantly increase the demand for OTT services because of low subscription prices in Egypt compared to other African countries. OTT service providers such as Netflix, OSN Streaming, Starzplay, and Amazon Prime offer on-demand videos for customers, thus creating new growth opportunities for the telecom market.
- According to Ookla Speedtest Global Index, Egypt ranked 84th with a median mobile download speed of 22.7 Mbps in October this year. Customers are migrating to mobile-based OTT services, thus creating new growth opportunities for the telecom market.
- According to GSMA, smartphone adoption is expected to reach 91 million in 2025. Adults in the country are increasingly using smartphones. The smartphone penetration will further increase the demand for OTT services.
- During the COVID-19 outbreak, people adopted work-from-home practices and spent more time watching TV and online media usage, especially online streaming and other forms of entertainment at home. OTT service providers offering on-demand videos will further drive the growth of the Egypt telecom market.
