1. Mohamed Elnawawy TE Data, SAE
Egypt’s Free Internet Initiative The Arab Telecom and Internet Forum May 2003 Lebanon
Mohamed Elnawawy
TE Data, SAE
Thursday, November 29, 2018Thursday, November 29, 2018
Egypt's Free Internet Initiative

2. Egypt's Free Internet Initiative
Outline
Egyptian Market Overview
Free Internet Initiative (FII) Framework
FII Statistics
FII Achievements
FII Challenges
FII Opportunities
FII Growth Indicators
FII Business Model Adopters
Thursday, November 29, 2018
Egypt's Free Internet Initiative

3. Egyptian Market Overview Economic Facts
Total Population
69,000,000
Under 25 Years Old
65%
High School Graduates Annually
1,076,800
University Graduates Annually
223,000
Ranked 17th Worldwide in Annual Graduates
Telephone Subscribers
8,200,000
Fixed Lines
10,700,000
Mobile Subscribers
4,859,000
Thursday, November 29, 2018
Egypt's Free Internet Initiative

4. Egyptian Market Overview Economic Indicators
FY 01/02 - A
FY 02/03 - E
Real GDP Growth Rate
3.20%
4.00%
GDP at Market Price (LE bn)
385
415
Average Annual Inflation Rate
2.40%
3.10%
Budget Deficit (% of GDP)
3.60%
4.10%
Net International Reserves (US$ bn)
14.1*
Total External Debt (US$ bn)
28.3**
Current Account Deficit (US$ bn) 9
Unemployment Rate
7.80%
Population (mn) 69
Per-Capita GDP (US$)
1,400
Purchasing Power Parity (PPP) (US$)
2,700
Foreign Direct Investment (US$ bn)
2.7
Population Growth 2%
* September 2002 A=Actual Source: CIBC (Commercial International Brokerage Co.)
** October 2002 E=Expected
Thursday, November 29, 2018
Egypt's Free Internet Initiative

5. Egyptian Market Overview Internet Industry Milestones
Ready
1993
First Internet Service Introduced
(Private Sector ISP's Legally Grey)
Q 1999
Steady
1996
Private Sector ISP's Sanctioned
1998
Internet Society of Egypt (ISOC Chapter) Founded
Launch of GSM through Private Sector Competition
Corporatizing the Sate-Owned ARENTO
Regulation: Telecom Regulatory Authotity (TRA), Operation: Telecom Egypt (TE)
3Q Present GO
1999
MCIT Established
ISP's Recognized as Operators, RS for Toll Based Access
2000
ISP's Licensing Framework
2001
Telecom Egypt Interconnecting with Licensed Operators
2002
Free Internet Initiative (FII) Launched
Local Loop Unbundling & ADSL Service Introduction
2003
MCIT New PC's Initiative Launched
The New Telecom Act Issued
Thursday, November 29, 2018
Egypt's Free Internet Initiative

6. Egyptian Market Overview ISP’s Licensing Framework
CLASS A
Facilities-based
Backbone Providers
CLASS B
PDN's
CLASS C
Non-facilities-based
Virtual
Purchase International Bandwidth
Yes No
Install Copper / Fibre Transmission Facility in Cases of non-availability
Wholesale
Collocation with Incumbent & Offloading Transmission Network
Un-bundle Subscriber Loop, Install Splitting Equipment
Receive Own Numbering from TRA
Revenue Share in Offloaded Call Revenues
Retail
Awarding
Individual Qualification
Class License
License Fee
3% Rev
None
License Fee Minimum
EGP 500K / Year
EGP 300K / Year
Thursday, November 29, 2018
Egypt's Free Internet Initiative

7. FII Framework Inception
Initiative First Announced Feb 2001
Subscription Free Internet Service
Internet dialup Tariff = Local Phone Call Tariff (EGP 1.2 / Hour)
Users don’t pay additional subscription fees
Internet Calls Charges are collected by TE
With regular telephone bills
Basic Model relies on Offloading / Revenue Sharing Mechanisms
Special Numbering Prefixes (0777, 0707)
Thursday, November 29, 2018
Egypt's Free Internet Initiative

8. FII Framework Offloading Concepts/ o m 3
User
Modem
Local Exchange
Tandem
Exchange
INTERNET
Access Server
Radius 1 2 4 6 5
Ethernet
PSTN
TRAFFiC
IP TRAFFIC
Router
DNS
Partial Offloading
Long Call Hold
Local Switch Offloading
Transit Switch Offloading
Overflowing Traffic
Non-POP Traffic
Thursday, November 29, 2018
Egypt's Free Internet Initiative

9. FII Framework Offloading Concepts – Cont’d
Interconnection & Not Revenue Sharing
Local PSTN Tariff l a t i g d R S C T D A L K /
User
Mode m
Local
Exchange
Tandem
INTERNET
Radius
Tandom 1 o 3
Access Server 2
Ethernet
Route r
Mail
PSTN
TRAFFiC
IP TRAFFIC
DNS
Thursday, November 29, 2018
Egypt's Free Internet Initiative

10. FII Framework Revenue Sharing
TE & ISP’s agreed on an offloading Revenue Sharing Formula
ISP TE
POP Calls (Offloading) 70% 30%
NON-POP Calls (No Offloading) 30% 70%
ISP’s tend to cover more exchanges; increase offloading; increase Share of Revenue
Thursday, November 29, 2018
Egypt's Free Internet Initiative

11. FII Framework Numbering Plan
Special Prefixes selected for FII (0777-XXXX & 0707-XXXX)
ISP’s acquire their number(s) from TRA for an annual fee.
ISP’s acquired the premium numbers from TRA in an auction, Dec 2001.
TRA guarantees Number Portability to Virtual ISP’s.
Thursday, November 29, 2018
Egypt's Free Internet Initiative

12. FII Framework Launch & Coverage
Service was Launched 14 Jan 2002
By H.E. President Hosny Mubarak
100,000 users dialed on the first day
Coverage
Cairo: 14 Jan 2002
Alexandria: 15 Apr 2002
Canal Cities: 15 Apr 2002
Delta: 15 Jun 2002
Nationwide: 15 Oct 2002
Thursday, November 29, 2018
Egypt's Free Internet Initiative

13. Egypt's Free Internet Initiative
FII Statistics ISP’s
Class A ISP's 4
Class B ISP's
Class C ISP's
135
Free Internet #'s
213
Access Ports Installed
66,900
Source: MCIT, Apr 2003
Thursday, November 29, 2018
Egypt's Free Internet Initiative

14. Egypt's Free Internet Initiative
FII Statistics Usage
Total Unique Callers
767,579
Average Minutes / Call 22
Average Minutes / Day
18,560,653
Average Minutes / Month
556,819,590
Source: MCIT, Apr 2003
Thursday, November 29, 2018
Egypt's Free Internet Initiative

15. FII Statistics Geographical Distribution
Thursday, November 29, 2018
Egypt's Free Internet Initiative

16. Egypt's Free Internet Initiative
FII Achievements
Consumer Related
Cost
Quality of Service (Pervasive Competition)
EUP Fixation requires creativity in Customer Care & QoS
Market / Industry Related
PSTN relief from Long Hold Calls
Rise to National Operator know-how
EUP Fixation requires creativity in building facility & developing business models
Thursday, November 29, 2018
Egypt's Free Internet Initiative

17. Egypt's Free Internet Initiative
FII Challenges
Technical Challenges
PSTN Billing; Call Calculation
Switch Convergence; Blurring the Lines
Future Technology; FII is based on copper local loop technologies
Blocking Content
Regulatory / Business Challenges
Local Loop Management
PSTN Tariff Re-pricing
Jan 2002 – Mar 2002: 10 PT / 6 Min’s
Mar 2002 – Present: 2 PT / Min
Market Awareness
HR Training; Capacity Building
Thursday, November 29, 2018
Egypt's Free Internet Initiative

18. Egypt's Free Internet Initiative
FII Opportunities
Initiative: “PC for every Citizen”
By: MCIT
Date: Nov 2002
Target
PC’s at affordable prices to be sold and paid through installments on the telephone bills
Objective
Distribute 7 Million PC’s in 7 Years
Milestone
9,000 PC’s sold in less than 5 weeks
Impact on FII
Increase Total Number of PC’s in Egypt
Increase Number of Internet Users in Egypt
Increase Total Minutes consumed on the Internet
Thursday, November 29, 2018
Egypt's Free Internet Initiative

19. FII Growth Indicators Minutes Consumption
Feb 2002: 193 Million Minutes
Aug 2002: 445 Million Minutes (231%)
Feb 2003: 565 Million Minutes (293%)
Thursday, November 29, 2018
Egypt's Free Internet Initiative

20. FII Growth Indicators Bandwidth Utilization
Feb 2002 Consumption: 155 Mbps
Aug 2002 Consumption: 245 Mbps (158%)
Feb 2003 Consumption: 380 Mbps (245%)
Thursday, November 29, 2018
Egypt's Free Internet Initiative

21. FII Business Model Adopters Saudi Arabia
Thursday, November 29, 2018
Egypt's Free Internet Initiative

22. FII Business Model Adopters Yemen
Thursday, November 29, 2018
Egypt's Free Internet Initiative

23. Mohamed ElNawawy TE Data, SAE
Thank You
Mohamed ElNawawy
TE Data, SAE
Thursday, November 29, 2018Thursday, November 29, 2018
Egypt's Free Internet Initiative