Industry Trend Analysis - 4G To Drive Market Transformation - AUG 2017

BMI View : The imminent market-wide launch of 4G services and Telecom Egypt ' s entry into the mobile market will have implications for all segments of the market, but with different effects . Our outlook for the mobile and broadband markets is quite positive, while we maintain a negative view for the wire line voice market.

The National Telecom Regulatory Authority (NTRA) has now allocated LTE-suitable spectrum to each of the operators that secured 4G licence concessions in 2016. These include mobile players Vodafone, Orange and Etisalat, as well as wireline incumbent Telecom Egypt (TE). The regulator implies that the operators would have to launch 4G LTE services commercially within Q317. Two key developments stemming from this move will shape the Egyptian telecoms market over the next five years.

The first is TE's entry into the mobile market; the second is the virtually simultaneous launch of 4G services by the MNOs. TE was the first company to obtain a 4G licence in Egypt and is expected to enter the mobile market before the end of 2017. It has made network sharing deals with rivals Orange and Etisalat to operate as a mobile virtual network operator (MVNO) until it can build its own national network. Furthermore, TE is in talks with its mobile partners to provide wholesale wireline infrastructure, enabling them to act as virtual wirelineline operators.

4G Launch To Benefit Broadband Market
Egypt - 3G/4G Forecasts
f = BMI forecast. Source: NTRA, operators, BMI

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