By the date of publishing this article on March 2020, Egypt cell phone market is witnessing the declaration of 112% sim card ownership per person, for a society with a population of 100m , the percentage of people owning more than one sim card is expanding rapidly , reaching the level of 1.12 sim per capita , thus , the market represents a mouth-watering opportunity for all cell phone operators to expand in the local market of Egypt.
By the day , we are also witnessing a great dispute in the market for Vodafone international looking toward selling its market share to STC, the main cell phone provider in the kingdom of Saudi Arabia which behold this opportunity as a cutting edge option for boosting their global market share, on the other side , telecom Egypt, the land line phone services operator who launched their cell phone network 2 years ago are still holding the ownership of 45% of Vodafone Egypt registered shares , and looking toward acquiring the company in order to integrate it with their sunrise network to hit the point of being the largest network with subscribers upon the Egyptian lands.
The competition between the 2 companies, telecom Egypt and STC is soaring day after day as long as both companies view the exiting of Vodafone from the Egyptian market as a great opportunity for them, although it appears as being vague and confusing for the investment market of why would Vodafone exit yet the market is still holding a great opportunities for more investors to compete , a very short sentences appear to mark the crowding out effect that is happening in the local market.
So far, the Egyptian cell phone market can be classified as being reaching the saturation phase in its lifecycle, the huge amount of customers is backed up by many reasons , one of them represent a cutting edge problem for most of the operators, as Egyptian consumers buy more than one sim to avoid the risk of being out of coverage under any circumstances, since no company up till date can offer a 100% coverage at all areas and that is technically impossible due to the inability to acquire the basic resources for building new connection towers since the local community perception for this towers radiation to be one of the main causes of cancer in the country, while this information is not confirmed or denied by official research papers, it still represent a great problem for the companies to expand.
Currently , the Egyptian household spending on telecommunications and internet services have tripled in the last 7 years for many reasons , the first is the growing dependence on the internet as a source of communication facilitator between the locals and their relative expats in other countries, also , the young population contribute in the growth of the market as their cell phones now represent the main resource for entertainment beside its telecommunication role.
The first company to establish the corporate objective to include the cell phone services in the basket of goods of the Egyptians was Mobinil network before being renamed under its main shareholder orange, it was established in 1997 aside misrfone or click GSM which later named under Vodafone , before the entrance of the third network by the emirate first operator Etisalat as a third competitor in the market, thus the market even after the entrance of WE network owned by telecom Egypt is still representing an oligopoly due to the strict barriers of entry to the market.