{"id":666636,"date":"2025-06-11T00:00:00","date_gmt":"2025-06-11T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/hardhats\/what-is-hindering-egypts-telecom-infrastructure-growth\/"},"modified":"2025-06-11T00:00:00","modified_gmt":"2025-06-11T00:00:00","slug":"what-is-hindering-egypts-telecom-infrastructure-growth","status":"publish","type":"hardhat","link":"https:\/\/enterpriseam.com\/egypt\/hardhats\/what-is-hindering-egypts-telecom-infrastructure-growth\/","title":{"rendered":"What is hindering Egypt\u2019s telecom infrastructure growth?"},"content":{"rendered":"

Is Egypt <\/strong>losing<\/strong> ground in the telecom infrastructure race? <\/strong>Rising data consumption and a push for digitalization have yet to translate into investor confidence, as regulations and issues with network deployment continue to act as obstacles in face of the telecom sector\u2019s growth, according to the GSM Association\u2019s (GSMA) latest Igniting Mobile Investment in Middle East and North Africa report (pdf)<\/a>.<\/p>\n

Financial returns are not keeping pace with soaring data demand:<\/strong> Growth in digital services is driving a surge in data usage, but average revenue per user remains low, according to the report. The weak returns are likely making it harder for operators to justify new investments without a clearer path to profitability.<\/p>\n

A less-than-ideal regulatory environment: <\/strong>Egypt\u2019s telecom licensing framework ranks among those less attractive in the region, particularly when compared to Gulf markets, the report finds. Some of the key structural issues include:<\/strong><\/p>\n

#1- Short-term licenses:<\/strong> Telecom operators face short licensing periods, the report said. Authorities need to \u201cprovide longer license periods for investment certainty and include presumption of license continuity,\u201d progressively modernise the licensing framework, and open the door for tech-neutral licensing, it added. <\/p>\n

#2- Lack of facilities: <\/strong>The association wants the government to \u201cpromote the adoption of digital technologies across various sectors and applications in public service delivery to stimulate citizen demand for e-government solutions.\u201d Governments should also create an environment suitable for partnerships between telecom players and fintech firms.<\/p>\n

#3- No framework for infrastructure sharing: <\/strong>The lack of regulation around infrastructure sharing raises rollout costs and delays expansion into underserved areas.<\/p>\n

#4- The regulatory framework: <\/strong>The report highlights the need to cut down on regulatory intervention, seeing as \u201ccompetitive markets with different commercial offerings and information that allow consumers to make informed choices are best able to deliver the quality of mobile service.\u201d<\/p>\n

#5- The tax burden: <\/strong>The report recommends that the telecom sector \u201cbe taxed under a broad-based tax regime rather than through sector-specific levies.\u201d Egypt should be doing more to improve the sector-specific revenue-based levies on operators and duties on consumers, according to the report.<\/p>\n

Gulf markets lead on investor-friendly regulation:<\/strong> The UAE, Saudi Arabia, Oman, and Qatar top the region in telecom investment attractiveness, thanks to long-term licensing, open-access fiber policies, and more flexible regulatory frameworks. Egypt, by contrast, ranks above only a handful of North African peers and continues to lag behind in financial inclusion.<\/p>\n

Falling behind on regional metrics: <\/strong>Egypt ranks near the bottom of the region when it comes to adopting digital payments, according to the report. Despite its sizable consumer base, it is outpaced by its GCC neighbors, Morocco, Jordan, and Iraq.<\/p>\n

The GSMA is calling for regulatory reforms to unlock telecom investment in Egypt. <\/strong>The association recommends extending license durations and streamlining sector fees. It also urges regulators to ease fiber rollout through a clear right-of-way framework, enable infrastructure sharing, lift spectrum restrictions, adopt technology neutrality, and deepen collaboration with fintech firms to boost digital payments and financial inclusion.<\/p>\n

The government is allocating a <\/strong>significantly smaller share<\/a><\/strong> of next fiscal year\u2019s budget to <\/strong>the telecom and IT sectors<\/strong> \u2014 despite their position as the fastest-growing segment of the economy. The ICT sector will receive EGP 13 bn in public investment during the fiscal year 2025-2026, down from EGP 85 bn this year. Spending will continue to prioritize telecom infrastructure, digital transformation, digital skills and capacity-building initiatives, IT industry localization, improving cybersecurity, and growing exports of outsourcing and consulting services.<\/p>\n

Telecom players are laying the groundwork for expansion:<\/strong> E& Egypt is set to invest up to EGP 18 bn this year as part of its strategy to expand services and strengthen its network, Chief Corporate Affairs Officer Hossam ElMeadawy said<\/a> during a presser earlier this year. Vodafone is also gearing up to invest over EGP 10 bn in 2025<\/a>, with a focus on expanding its telecom tower network. Meanwhile, Orange aims to raise its infrastructure spending by 50%<\/a> y-o-y to EGP 15 bn.<\/p>\n

ICYMI- <\/strong>The country\u2019s network operators launched 5G services last week<\/a>. <\/p>\n

The sector has seen significant growth over the past decade<\/strong>, backed by sustained investment in network infrastructure and the expansion of services to reach mns of users. Mobile operators have poured some USD 2.7 bn<\/a> into frequency and license acquisitions since 2019 \u2014 a signal of local and foreign investor confidence in Egypt\u2019s digital agenda, ICT Minister Amr Talaat said in May. The ministry is coordinating with operators on a phased 5G rollout, prioritizing major cities, key highways, and strategic economic zones to tap the technology\u2019s potential for development and enhance Egypt\u2019s global competitiveness, Talaat added.<\/p>\n","protected":false},"excerpt":{"rendered":"

Growth in digital services is driving a surge in data usage, but average revenue per user remains low<\/p>\n","protected":false},"featured_media":666637,"menu_order":0,"template":"","categories":[7235],"tags":[72,7116,843],"class_list":["post-666636","hardhat","type-hardhat","status-publish","has-post-thumbnail","hentry","category-hardhat","tag-enterpriseam","tag-hardhat","tag-telecoms","wpautop","entry"],"acf":{"mongo_id":"98455b83-4130-4c71-a74f-21ac1f3a014b","order":"14","is_powered_by":false,"story_type":"2","photo_url":"https:\/\/ent.news\/2025\/5\/2432.jpg","photo_position":"above","homepage_title":"","full_issue_title":"What is hindering Egypt\u2019s telecom infrastructure growth?","related_issue":[666612],"teaser":"Growth in digital services is driving a surge in data usage, but average revenue per user remains low","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/6\/.1ca964c2-69eb-4b61-8888-89eeec692eb0.mp3"},"yoast_head":"\nWhat is hindering Egypt\u2019s telecom infrastructure growth? 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