Communications infrastructure is an important element of an effective functioning economy and staying updated is a challenge for telecom sector.
Communications infrastructure is an important element of an effective economy
The Telecommunications sector has emerged as a strong focus sector for KPMG in Egypt. The sector has witnessed substantial growth over the last few years, attracting a number of new players across the telecom ecosystem, including mobile operations, value-added services, passive infrastructure and equipment manufacturing.
KPMG in Egypt is a leading service provider to the communications market. We have extensive experience working with clients across the telecom value chain, including operators, carriers and equipment manufacturers. We bring together a diversified skill set and suite of service offerings to meet contemporary needs of the Telecom sector.
In September 2014, the government approved plans for the issue of unified mobile and landline licences, paving the way for the majority state-owned new operator to become the fourth mobile operator, subject to a payment of a E£2.5 billion (US$335 million) fee and the divestment of its 45 percent stake in the first largest network operator in Egypt by December 2015.
The activation of the new operator’s unified licence has been
delayed owing to regulatory complications. A major hurdle was cleared in 2014 when the National Telecommunications Regulatory Authority (NTRA) announced a unified price for the network services to be purchased by the new operator from the other operators. This will be done by region, with the largest network operator in Egypt offering its services in Alexandria and the Delta, the second-largest network operator in Egypt in Cairo, and the third-largest network operator in Egypt in the remaining governorates.
At present, the new operator, which is 80 percent state-owned, with the remaining shares traded on the stock market, remains the sole provider of fixed-line networks in the country. According to a system of unified licences that were to be activated in 2015, the three mobile operators will be entitled to gain access to the new operator’s fixed-line network, while the new operator will be able to use their mobile networks.
The government envisages the Technology sector being one of the main drivers of economic growth over the next five years, including the development of new information and communication technology (ICT) investment clusters, for example, a proposed technology pole in the Suez regional development scheme.
How can we help?
With an increasingly complex and challenging industry environment, it has become imperative to carefully navigate issues such as risk, costs, market assessments and domestic legislations. Our high-performing people, expertise, global reach and insight to cut through complexity deliver informed perspectives and clear solutions required by our communication clients.
We can also offer the advantage of a strong global network of communications teams across the KPMG fraternity.
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