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Al-Ahram Weekly 4 -10 February 1999 Issue No. 415 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 4 -10 February 1999 Issue No. 415
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Book Fair Economy Opinion Culture Features Living Travel Sports People Time Out Chronicles Cartoons Letters Regulations hinder telecom sector
By Amira Howeidy
Mega-projects, globalisation and liberalisation are the reasons why telecommunications is now the fastest growing industry in Egypt. The third Cairo Telecomp IT, Telecom, Satellite and Broadcasting Technology trade fair held from 26 to 29 January at the Cairo International Conference Centre in Nasr City attracted a large number of international companies and investors.The fair's motto was "A new vision towards a new millennium" and next door, the 31st Cairo International Book Fair adopted a similar theme. Gone is the exhausted rhetoric of globalisation: let's talk millennium.
Officials claim that Egypt is getting ready for the new millennium. But so far the attitude towards the so-called Year-2000 bug has been one of indifference. Despite this, the telecommunications sector has grown by 37 per cent over the last two years, according to the most conservative estimates.
Multinational companies in the IT, telecom, satellite and broadcasting sectors are becoming increasingly interested in investment opportunities in Egypt, and recent years have also seen the emergence of giant local companies such as MobiNil, Misrfone and GAM communications. Last week, Iridium, the world's first global satellite mobile communications company, signed an agreement with the Egyptian government to offer a mobile satellite telephone service.
"It's one of the fastest deals we've ever made," says Fergi Varghese, senior account manager of Iridium. "It's obvious that officials realise that mobile communications is the fastest growing sector of the telecommunications business." Mutual interest played an important role in closing the deal so quickly. "Egypt is going ahead with the Toshka project and other mega-projects in the Western desert and it wants to attract foreign investors. Shouldn't there be an equally hi-tech infrastructure to begin with?" he says.
Varghese says that Iridium made the decision to invest in Egypt after extensive study of the local economy: "Egypt's economy is booming. This is why we are here." Iridium is targeting business travellers and companies working in remote areas. Iridium customers in areas covered by the conventional mobile network will be charged around 25 per cent more than the current rate for standard mobile phones, with prices rising to an average of $5.80 per minute outside of these areas.
This year's Cairo Telecomp attracted more visitors and exhibitors than ever before. More than 100 local and foreign exhibitors set up colourful booths and played promotional tapes to attract visitors. Apple equipped a cyber-café with its fashionable new i-mac. "We are here to confirm our comeback after Apple Macintosh succeeded in making the i-mac the best selling computer," says Iyad Issa, product and support consultant of Arab Business Machine, Apple Macintosh's regional representative. "We want to make the best of Egypt's economic boom," he adds. Offering the i-mac for only LE5,500 at the fair, Apple is certainly sending out the right signals to the market.
"The market is very attractive," says Hossam Saleh, executive vice president of GAM communication services. "It's growing quickly in Egypt. This means that there is a place for everyone, but the [pre-privatisation] laws and regulations are holding us back." He argues that there is a conflict between the government's encouragement of events such as Cairo Telecomp and its insistence on tough customs laws and regulations which hinder industry growth.
Despite officials' promises of reform nothing has been done, claims Saleh. "This is evident as we see that many big foreign companies prefer to deal with local companies who can work the system rather than coming here themselves. They know that if they come here, they will be faced with huge problems," he says.
Saleh believes that the Egyptian market still has a long way to go. "We are good consumers, but not a big market," he argues. "We are moving at a very slow pace." He claims that neighbouring countries such as the UAE, Kuwait, Oman and Morocco are doing much better in these sectors and points out the irony of the fact that most of these countries' IT professionals are Egyptian.
However, Saleh is confident that the GATT agreement will push the government into faster reform. Positive signs are the recent privatisation of pay-phones and the semi-privatisation of the mobile phone network.
Two more IT events -- Gitex and Comdex -- are planned for April and May respectively.
