Mobile penetration in Egypt will reach 97% by year-end 2014 from 54% in 2008, driven by significant changes in its competitive landscape, according to the latest report from Pyramid Research. Communications Markets in Egypt offers a precise, incisive profile of the country's converged telecommunications, media, and technology sectors based on proprietary data from our research in the Egyptian market. This 27-page report provides detailed competitive analysis of both the fixed and mobile sectors, tracks the market shares of technologies and services, and monitors the introduction and spread of new technologies such as WiMax, IPTV, and VoIP. This executive study provides a comprehensive view of the Egyptian communications market by analyzing key trends, evaluating near-term opportunities and assessing upcoming risks factors. Although the total size of Egypt's telecom market is estimated to have reached US$5.7 billion in revenue as of year-end 2008, it is still comparatively small despite the country's large population, notes Yejide Onabule, analyst and author of the report. However, it is among the fastest growing markets in the Middle East and Africa, with total revenue expected to grow at a CAGR of 7.4 percent for the 2009 to 2014 period. "Pyramid expects strong growth from the Egyptian telecom sector through 2014, particularly due to changes in the country's competitive landscape," she says.

Mobile penetration in Egypt rose significantly from 40 percent in 2007 to 54% in 2008, with 65% expected in 2009. "This has been largely driven by the entry of a third mobile operator, Etisalat Egypt, which has ignited the market with lower prices and innovative services; it was also the first to launch 3G and is investing into upgrading to HSPA," says Onabule. "Other operators compete to attract the untapped, lower-income segments, developing very successful low-ARPS business models," she explains. "This has led to a boom in the number of mobile subscriptions, which grew by 37% in 2008. We expect the current rapid growth to persist through the forecast period, with mobile penetration reaching 97% by year-end 2014," she adds.

Egypt became the second Arab country to introduce a third mobile operator.  "Etisalat Egypt, which is a subsidiary of the UAE's government-owned operator Etisalat, gained a respectable 8.6% of the market in 2008, and we expect it to attract a 15.2% market share by 2014," says Onabule.
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