The telecommunications sector has been a driver of economic growth, contributing significantly to the African economy. However, the rising costs of deploying such technologies necessitate additional revenue streams for telecom operators to ensure continued investment and innovation.
Egypt’s National Telecom Regulatory Authority (NTRA) announced the agency's preliminary approval to increase telecommunications service prices. The decision was revealed during the Fifth Generation session at the Cairo ICT 2024 exhibition held Nov 17- 20. It comes in response to rising operational costs faced by mobile service providers.
The CEO of the National Telecom Regulatory Authority (NTRA) Mohamed Shamroukh emphasized that telecom companies have the right to review and adjust their service rates to reflect economic realities. However, the NTRA is carefully studying the timing and scale of the price increase to balance corporate needs with consumer protection.
This decision represents a significant step in Egypt’s telecom sector, moving toward cost-reflective pricing while ensuring service affordability. The timeline and scale of price adjustments will be finalized after a comprehensive evaluation by the regulator.
It reflects the need to address rising operational costs, which threaten the ability of telecom operators to deliver reliable services. By enabling companies to sustain and enhance infrastructure quality, including investment in advanced technologies like 5G, NTRA supports its vision of positioning Egypt’s ICT market as a globally leading sector in service quality.
According to the Information Technology Development Agency (ITIDA), an Egyptian government agency affiliated to the Ministry of Communications and Information Technology, Egypt's ICT sector achieved a growth rate of 14.4% during the fiscal year 2023/2024, making it the country's fastest-growing industry for the sixth consecutive year.
The announcement underscores the ongoing challenges in maintaining a sustainable telecom infrastructure amidst economic pressures, sparking widespread interest and debate among stakeholders.
Hikmatu Bilali
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