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Al-Ahram Weekly 27 July - 2 August 2000 Issue No. 492 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly 27 July - 2 August 2000 Issue No. 492
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Region International Economy Opinion Culture Features Travel Living Sports Profile People Time Out Chronicles Cartoons Letters At Internet speed
By Niveen WahishFive years ago, Khaled Bichara, a computer science graduate with a minor in business administration, did not anticipate he would become a major player in the Egyptian Internet service provider (ISP) market. Bichara is CEO, president and one of 12 major shareholders, along with Orascom Telecom, of LinkdotNet, formed recently by the merger of Intouch and Link Egypt. The new firm controls almost half of the ISP market.
Despite having come so far at the age of 29, Bichara, who is informal in both dress and demeanour, displays little egotism. He was consumed with enthusiasm while talking about his work. This energy is perhaps the key to his success. Over the course of his career, he has consistently taken the initiative and beaten long odds.
His professional aspirations began small, but dreamed big. In 1995, with two friends, he formed Microlabs, a software development company. At the same time, with two other friends, he set up Link Egypt. Ultimately, his ISP venture began to dominate all his time and Link and Microlabs merged.
His family had a business of its own, agents for manufacturing equipment, but Bichara decided to set out on his own. Software development had fascinated him ever since he received his first computer in sixth grade. At high school, he already knew how to profit from his computer knowledge selling typeset lecture notes and bumper stickers to classmates
When Bichara set up Link, the original aim was merely to create a web-site for booking three and four star Egyptian hotels on-line. However, another Internet firm beat Link to the punch. Consequently, Link was transformed from a booking agent into an ISP. But investors needed to be found.
"To get into business, we got 12 people to invest in the new company and a joint-stock company with LE1 million in capital was formed." said Bichara. Since none of the partners had previously had any Internet experience, they travelled to Italy in to gain necessary expertise.
Although Bichara and his partners may have lacked the technical know-how their Egyptian competitors had, they proved themselves far more professional and business-oriented.
Following an aggressive marketing and pricing policy, Link introduced unlimited Internet access at a flat fee. Their competitors were convinced Link would be out of business within three months. "There were many bets against us, simply because we were younger." Bishara recollected. "We did things the hard way and learnt as we went along."
As the company proved itself in the market, other companies were forced to respond. Consumer prices across the ISP sector began to fall. However, Link was determined not to be priced out of the market. "We had a lot at stake," Bichara said, "If we had lost the money we put in, that would have been the end."
Link emerged as the industry's leader "not because of any genius. One simply needs to follow a solid plan persistently and to be not only scientific and methodical, but also spontaneous." Speed is also a key element for success, says Bishara.
Few of the companies which existed when Link started are in serious competition today." Although Bichara and his associates control the country's largest ISP, "We will not sit out in the sun."he asserts.
Bichara has little time to rest on his laurels. "The developments in the industry are continuous. We cannot tell the competition to stop," he said. Furthermore, although LinkdotNet may be the industry leader in Egypt, its capacity lags behind state of the art technologies in Europe and the United States.
In Bichara's opinion, the Egyptian ISP market is in its infancy. "We have just got started," he said. Bichara points out that out of a total population of 60 million, there are only 50,000 users. However, there is great potential and the industry is growing "otherwise we would not have grown."
More needs to be done to promote the use of information technology. Bichara notes, "Any discount in computer prices would be significant in making the Internet more accessible to average Egyptians." Consequently, Link and others in the industry are eager for the government to reduce the customs and sales tax imposed on computers.
Although the popularity of the Internet has been on the rise in Egypt, its success pales in comparison to the popularity of mobile phones. For the ISP market to develop as fast as the mobile market has, says Bichara, there must be greater awareness of the usefulness of the Internet. "This awareness should also be coupled with increased services." There is a lot more to the Internet than entertainment and education, he says, "for instance, when a businessman does most of his work on the Internet, this saves time."
The high cost of the service plays a role in determining the number of subscribers, Bichara says, yet "it is not the number one issue." There are at least 50,000 potential subscribers, who can afford it, but who are not yet on-line. The reasons for this may be either a lack of awareness or a lack of service access.
According to Bichara, the real dilemma is that there is a vicious circle. Since Internet services are not offered on a wide scale, the market cannot grow. Limited supply limits potential demand. The Internet in Egypt is still used primarily for educational and recreational purposes, as opposed to the more lucrative e-business and e-commerce sectors.
To promote market growth, ISP prices must be lowered. However, as long as the price for international telephone calls remains high, there is little room to manoeuvre. Another constraint is the language barrier, which makes Arabising the service a major objective for LinkdotNet. "If we want everyone to use the Internet, we cannot require everyone to know English."
Ultimately, Bichara's objective is to expand out of the local market and become a regional operator. Yet, he realises that the strength of his firm rests on the solid foundation it has built in Egypt. "We have worked in this market for the past three or four years, and have helped build it." Consequently, he insists "We are not ready to allow anyone to just collect what we have worked so hard to construct."
Related stories:
Larger net for bigger fish 13 - 19 July 2000
Private initiatives 11 - 17 May 2000
Don't hold your breath 11-17 May 2000
Dial XXX 10 - 16 February 2000Related links:
Link Egypt
LINKDOTNET
In Touch
Orascom Telecom
