Egypt is the most advanced in using fixed broadband subscriptions in Africa, OMDIA

Matthew Reed: The pandemic has led to an increase in the use of the Internet and social media ... We must work to increase investment in broadband networks, reduce the digital gap, and deliver XDSL services to all citizens.

OMDIA, a leader in the field of data, research and studies supporting providers of services and technology solutions, recently released its latest report on broadband networks that is widely spread due to its economic and social benefits, as it is one of the most important and strategic pillars for the development of countries worldwide.

The report revealed special expectations that help decision-makers to take appropriate steps and plans for the future of their business, especially as it encompassed a set of important recommendations and suggestions for developing broadband networks in Egypt. On top of them, is inevitability of working on reducing the digital gap and ensuring that broadband services reach all citizens, in addition to reviewing the increase in participation in mobile and fixed facilities to overcome financial obstacles. Moreover, the report underscored the fact that investment in broadband should be enlarged to be able to continue providing quality services, especially after the spread and outbreak of COVID-19. Eventually, the report emphasized that Egypt should continue to invest in developing digital skills to guarantee the provision of high-level services to customers.

The report also indicated that the Egyptian government is working on developing the broadband infrastructure in Egypt in light of the country’s vision in digital transformation, in cooperation with Telecom Egypt (TE), in which the Ministry of Communications and Information Technology has an 80% stake, to modernize the access network since 2014.

According to a statement issued by Telecom Egypt, the company invested 12.7 billion Egyptian pounds ($ 790.3 million) in 2019 as a new shift in fixed broadband offerings in line with the country's strategy to develop its network capabilities and improve the quality of internet services in Egypt.

Moreover, the growth in broadband networks in Egypt in terms of infrastructure, digital initiatives and services is due to the efforts of the Ministry of Communications and Information Technology, the National Telecommunications Regulatory Authority and the operators, where Egypt witnessed a growth in fixed broadband services from 25% in 2017 to more than 35% in the first quarter of 2020, and there is still more growth potential for high-speed fixed broadband for the right technology at the right price in the market.

Matthew Reed, an analyst in OMDIA said: “Broadband reports have become of great prominence, whether for companies working in the field of technology or smart governments, especially after the great expansion in the usage of the communication technology.” He also expounded that this global pandemic led to an increase in the internet networks and social communication’s usage, especially when it comes to the fields of education, public, health services, and others. Meaning, these services have started to become carried out remotely, which led to the existence of a changing lifestyle compared to what used to occur prior to the emergence of this lethal pandemic, the thing that enforced an acceleration of growth in subscription to fixed broadband services in Egypt.

He also added: “The spread of Covid -19 has led to an increase in subscriptions to XDSL services by 6.1% at a quarterly rate, or 16.1% annually, to reach 7.99 million subscribers, by the end of 2020, compared to 6.88 million in 2019. While mobile broadband subscriptions saw growth from 36.89 million in the second quarter of 2019 to 41.79 million with a growth of 2.7% on a quarterly basis and 13.3% annually.

Reed also stated that the growth in fixed broadband subscription in Egypt is the highest of its kind in Africa. However, it is considered low compared to the Gulf countries, and it also highlights the need of the customers in Egypt to have reliable and high-speed connectivity.” He carried on his words by explaining that the progress and enhancement of the broadband services is an important factor in providing a system for the growth of digital services, including online communication tools, e-commerce, financial services, and finally e-government, which forms the basis of the digital economy.

He concluded his words by assuring that, information and communication technology will increasingly contribute to the development of the country's Gross Domestic Product (GDP), noting that OMDIA's broadband reports expect that although the market share of XDSL will decline over the next few years, XDSL will remain the largest fixed broadband technology in the region, capturing 39.7% of fixed broadband subscriptions in 2025