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ICT Sector in Egypt: Amr HASHEM Ministry of Communications and Information Technology Arab Republic of Egypt A Model For Reform.

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Presentation on theme: "ICT Sector in Egypt: Amr HASHEM Ministry of Communications and Information Technology Arab Republic of Egypt A Model For Reform."— Presentation transcript:

1 ICT Sector in Egypt: Amr HASHEM Ministry of Communications and Information Technology Arab Republic of Egypt A Model For Reform

2 Agenda Outlook of Egypt ICT Reform Process Timeline Major Policies Success Stories Way Forward

3 Egypt Potential Geography Cross Connection between Europe, Africa and the Middle East. Resources $80 billion invested in modernization of infrastructure in 21 years 72 Million inhabitants with 50% under the age of 20 Ranking 17th worldwide in no. of yearly graduates

4 Reform Process Empowerment of the Democratic Process Multi-Candidate Presidential Elections Parliamentary Elections under full supervision of the judiciary Transition into a Market Economy Building the institutional and regulatory framework Multitude of opportunities for private investment

5 ICT Reform Process 1998 Apr. 1998: Separation between telecom Regulation and Operation May. 1998: Privatization of mobile sector 1999 Jun. 1999: Launch of Attempt to Privatize Telecom Egypt Oct. 1999: Establishment of Ministry of Comm. & IT 2001 Jan. 2001: Launching of a number of PPP projects Jun Public Consultation on draft Telecom Act 2000 Jun. 2000: Adoption of the Telecom. Master Plan Jan Announcement of National CIT Plan Oct. 2000: Postponement of Privatization of Telecom Egypt 2000 Jan Ratification of Telecom Law 13/2003 Apr.2003: Joining WTO- Information Tech. Agreement Sept, 2002: Failure of negotiations for establishment of revenue-sharing scheme for WLL Jan. 2002: Launch of a Subscription -Free Internet service Jun. 2002: Commitments to WTO concerning Basic Telecom. Apr. 2004: Ratification of E-Signature Law and establishment of ITIDA May 2004: Launch of Broadband Initiative 2004 Nov 2004: Telecom Egypt receives investment grade rating 2005 Feb. 2005: Launch of Universal Service Fund Apr. 2005: Initiating Privatization Attempt for Telecom Egypt Dec 2005 De-regulation of telecom. market

6 Policy Principles Involvement of partnerships throughout the process Empowerment of the role of the civil society Free flow of information to all stakeholders Good Governance Decentralization of decision making Critical Role of Regulatory Institutions Commitment of Political Leadership to support ICT development

7 Information Society Initiative Inclusion of the stakeholders in the analysis and policy development process Government Technology Providers Service Providers Formulation of a master plan for ICT sector development in a deregulated environment E-Readiness E-Learning E-Government Execution of the plan in a Public-Private Partnership approach Network operators Academia Financial institution E-Health E-Culture ICT-Exports

8 Integration in Regional and Global Economy Bi-lateral Trade Agreements Multilateral Trade Agreements Euro-Mediterranean Partnership Greater Arab Free Trade Agreement Common Market for East and South Africa World Trade Organization

9 Undertook commitments for Basic Telecom Liberalization under the BTA in June 2002: Full commitment to Reference Paper Technology-neutral approach to licensing of services Full Market Liberalization by the end of 2005 No limitations on Foreign Capital participation

10 World Trade Organization Egypt joined the Information Technology Agreement in April 2003 Progressive Approach to Tariff reductions over 4 years Drop of tariffs by 2005 Extension for nascent industries till 2007 Accelerated the execution as part of the customs reform package in September 2004 Dropped the cost of deploying new ICT infrastructure by more than 33% Instrumental in various initiatives for PC-ownership and broadband deployment Weighted Tariffs on ICT products

11 Further Liberalization under WTO An offer for commitments on Computer Related Services for improving Egypts positioning as an IT hub for MENA No limitation on foreign staffing for the first 4 years of operations No restrictions on foreign ownership or national treatment Permitting cross-border supply of services whenever required Restructuring of the postal sector in Egypt inline with international best practices Licensing several companies for provision of Courier services in Egypt No limitations on National Treatment or foreign participation in courier companies

12 Professional Training Graduates in Thousands Developing highly qualified experts through Internationally certified programs Decision Support & E- Commerce System Analysis & Design Software Development Communication Networks Management & Security Call Centers Operations and Management Executed in cooperation with Multinationals in a win-win approach

13 ICT Skills Development Graduates in Thousands Aiming towards improving ICT literacy Office Applications Internet Web Development Executed in cooperation with universities and NGOs Qualifying trainees for International Computer Driving License

14 ICT Growth Private sector is leading the growth in ICT sector Investments of private- owned ICT Companies exceeded EGP 10 billions Number of private owned ICT companies exceeded 1500 companies employing 35,000 employees Supporting the ICT Associations formation: Egyptian Information Telecommunication Electronics &Software Alliance (EITESAL)

15 Smart Village A business park over 300 Acres of land: Multinationals (Microsoft, Alcatel, Vodafone, HP and Ericsson) Call Centers Technological incubators MCIT and NTRA A financial district in Phase III ( )

16 Regional Leadership in Converged Services Emergence of Egyptian Companies as regional operators Egypt is becoming a regional center for mobile network deployment and services ISC – Alcatel RNSC- Ericsson An E-Content initiative for the digitization of Arabic Content Privatization of Mobile Telephony has resulted in a wealth generation of almost EGP 35 billion

17 A service-oriented Growth Encouragement of further Public-Private Partnerships for infrastructure, services and industry development Provision of Converged Services Postal Sector restructuring Launch of MVNOs Further regional role in coordination and harmonization of policies and regulations as part of the global Information Society Promotion of ventures serving regional markets Call centers Internet exchange regional service centers

18 Useful websites

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