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Egypt’s telecom sector growth slows

Growth in Egypt’s telecommunications industry may be slower starting next year, as both mobile phone revenue per user and the number of new subscribers decline

Ahram online, Tuesday 14 Dec 2010
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Growth in Egypt’s telecommunications industry may be slower starting next year, as both mobile phone revenue per user and the number of new subscribers decline, said Bloomberg website, quoting an HC Brokerage report.

“The penetration rate in Egypt is higher than it seems as real penetration is expected to reach 95 per cent by the end of 2010,” said HC equity analysts Karim Khadr and Sarah Shabayek, referring to the proportion of people that subscribe to a mobile network.

Telecom Egypt, the country’s monopoly fixed line operator and a 45 per cent shareholder in the second biggest local mobile network, Vodafone Egypt, faces better growth prospects because of the diversity of its revenue stream and its strong balance sheet, HC said.

According to the report, Egyptian Co. for Mobile Services (Mobinil), Egypt’s biggest mobile network operator, will be pressured by growing competition and rising expenses incurred because of network upgrades.

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