Ahmed Ossama

VP & CCO

Outline

Egypt Market Overview

Egypt Broadband Market
Egypt Geography & International Connectivity
Transformation
Access Network Transformation
Total Telecom Transformation

Egypt Market Overview

Young Na6on

Egypts Demographic
Distribu6on Young Na)on

7%

60+

45- 59

12%

35- 44

12%

16%

25- 34

Popula)on = 87Million
More than 1/3 of Egyp)ans under 15
More than 50% of Egyp)ans under 25
1 Million School graduates every year
300K University graduates every year
A nation with 20 million households
and approximately half a million new
households are built and occupied
every year.

20%

15- 24

Main
Target

Genera4on C

Born

Late 80s / Early 90s

Habits

Connected, interac4ve, expressive, cynical

Lifelong use of technology

Digital
Na6ves

Genera4on C, Net Genera4on, Internet

Genera4on, Next Genera4on

34%

0- 14

tes Subscribers Base

Mobile Market Subscribers Base

(In 000s Subscribers)

(In 000s Subscribers)

9,554

70,661

9,282
7,934

FY 2009

FY 2010

FY 2011

7,323

FY 2012

6,781

FY 2013

83,425

96,798

99,704

55,352

FY 2009

FY 2010

FY 2011

FY 2012

FY2013

Egypt Broadband Market

Internet Users In Egypt

ADSL Subscribers Base

(In Millions)

(In 000s Subscribers)

38.8

2,000

1,832

te
Others

1,800

1,472

1,600

32.6
29.0

1,206

1,400

1,018

1,200

22.8

1,000

16.6

Internet Penetration (% of Population)

45.3%
14.4%

+18%

741

800
600

Household broadband Penetration

+34%

400
200

+22%

466

787

+17%

919

+13%

1,039

587

+26%

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

Internet Users breakdown

1.99
11.36
2.96
2012June

2012

Source: CAPMAS.

H1 2011

H1 2012

H1 2013

H1 2014

ADSL Market Share Breakdown

(In 000s Subscribers)

USB

H1 2010

(In Percent %)

Mobile Internet

ADSL
2.87

36%

2.39
19.26
13.55
3.35

64%

3.87

2013

June 2013
2014

June 2014

* MCIT website as at 31/12/2013.

Others

Egypt International Connectivity

TE Submarine Network

UK
Belgium

TE North

Germany

SEAMEWE-3

France

SEAMEWE-4
IMEWE

Italy
Portugal

Spain

Morocco

Syria
Lebanon

Tunisia
Algeria

North Korea
South Korea

Turkey

Greece

China
Iraq

Jordan

Iran

Kuwait
Bahrain
Qatar
Saudi Arabia
U.A.E

Libya

Japan

Pakistan

India

SEACOM

Taiwan

Bangladesh
Myanmar

Yemen

GBI

Cambodia

Djibou4

Philippine
Vietnam

Thailand

South Sudan

Sri Lanka
Somalia
Kenya

Malaysia

Brunei

Singapore

Tanzania

With a unique geographic

loca4on, TE has the
foremost submarine
cables connec4vity in the
region connec4ng three
con4nents

ALETAR
FLAG
FALCON-HAWK

Oman

Sudan

EIG

Mozambique

Australia

South Africa

Pillars
Global Reachability, connected directly to more than 60 countries
Resilience: TE is connected to East & West through more than 17 submarine cables
OSS: E2E solu6on capitalizing on the global submarine cable network connected to our partners networks worldwide

TE Standpoint

Paradigm

Voice only company

Declining xed voice business
Heavily centralized opera4ng model; planning, procurement,
execu4on, opera4on & maintenance

Regulatory

License separa4on framework

Data in a separate company
Mobile only through an MNO minority stake

Investment

Minimal investment in core & access

Poli6cal
Environment

2 revolu4ons; Jan 2011 & Jun 2012

Transformation

Migra4on of circuit switched access network -> IP-based access network

Access Technologies; ADSL2+, VDSL, FTTc, FTTh
Last Mile Copper < 1.5 KM
Triple Play in select areas
WiFi ooading

Enterprise

FTTx

VDSL2
ATM
Subten
din

FTTh

FTTc

FTTb

FTTb/FTTc

Green Field

Brown Field

All-in-One
VoIP
Read

ADSL2+

Residen6al

Access Network Transformation

Enterprise

IMS AG/SS

Access Network Transformation

Regional
Empowerment

Centraliza4on of planning & procurement

Decentraliza4on of execu4on, opera4on & maintenance
Regions; 3 areas, 14 sectors, 42 regions, 1500 central oces

Partnerships

Market leaders in access technology suppliers

Target

1700 MSAN Units, 2M Lines, ADSL2+ & VDSL, YE 2014

4000 MSAN Units, 4M Lines, ADSL2+ & VDSL, YE 2015

Impact

Transforming 50% of PSTN infrastructure to NGN

Shortening local loops from 5KM to 1.5Km max
Raising minimum anainable speed to 16Mbps

WiFi

Aggressive rollout of na4onwide WiFi Hotspots

10

Total Telecom Transformation

Thank you for your aben6on...

Ahmed Ossama
VP & CCO