Private equity firm CI Capital released a glowing assessment of the Egyptian telecom sector, including a recommendation that investors buy stock in Telecom Egypt. The Egyptian telecom sector grew at 13.5 percent for the first quarter of fiscal year 2009/10, posting the second highest year-on-year growth nationwide.
Telecom represents a major factor in Egypt’s ability to maintain positive GDP growth despite flagging profits from traditional revenue sources such as tourism, the Suez Canal, and foreign direct investment.
Simultaneously, Egypt’s IT sector is growing rapidly. According to the “Egypt Information Technology Report Q3 2009” by Business Monitor International (BMI), in 2008 spending on IT reached $1.2 billion, and is expected to nearly double in the next five years, topping $1.9 billion.
Omar Sami, head of the internet department at Al-Ahram Research Center, one of the fastest growing areas of Egyptian IT is providing telecom-related services.
“One of our main strong points in Egypt are the call centers. Increasingly, Egypt provides technical support for multinational companies’ IT sectors. Similar to India, Egypt can provide call center employees at globally competitive rates,” he said.
Voice and mobile technologies are merging with data, internet and information technology services across the board.
The report from CI Capital identified the three key segments of Egyptian telecom as mobile, fixed line and internet, but pointed out that technological developments are already blurring the lines between the three.
Source: Daily News Egypt