The ban on Internet services in Egypt has directly cost its economy approximately $5M

February 7, 2011

2 Min Read

CAMBRIDGE, Mass. -- The ban on Internet services in Egypt has directly cost its economy approximately $5 million, while the indirect costs on its connectivity are substantial, as many businesses depending on online presence and cellular services have been affected. These developments raise several crucial questions for the future of the Egyptian ICT sector, according to a new research note from Hussam Barhoush (http://www.pyramidresearch.com/ip_anpr_barhoush.htm?sc=LRPR020711_PPAME), Senior Analyst at Pyramid Research.

Information and communications technology (ICT) tools, such as online social networks, blogs, e-mail, SMS and voice services, have been used to prepare and organize the protests in Egypt, indicates Barhoush in a research note posted at Pyramid Points (http://www.pyramidresearch.com/points/item/110204.htm?sc=LRPR020711_PPAME). This led the Egyptian government to ban Facebook and Twitter, followed by a ban on all Internet service for several days. Ironically, the Egyptian government has been sending SMS messages to the Egyptian people through Vodafone Egypt, in which it has a 36 percent ownership stake. These messages, which have provoked an outcry from some operators, emphasized the benefits of maintaining the political status quo, notes Barhoush.

Read the full Pyramid Point, ICT Adoption Gathers Masses in Egypt (http://www.pyramidresearch.com/points/item/110204.htm?sc=LRPR020711_PPAME).

Pyramid Research continues to follow the Egyptian telecom market closely and will provide new, in-depth analysis in our upcoming Country Intelligence Report on Egypt. To pre-order the report, email us at [email protected].

Recent reports and services covering telecom activity in Africa/Middle East include the following:

mHealth Gains Popularity and Complexity as Mobile Penetration Climbs in AME: http://www.pyramidresearch.com/store/ins_ame_101231.htm?sc=LRPR020711_PPAME

New Market Dynamics Bode Well for Spike in Pay-TV Adoption: http://www.pyramidresearch.com/store/ins_ame_101220.htm?sc=LRPR020711_PPAME

Mobile Agriculture: A Development Imperative for MNOs and Farmers Alike: http://www.pyramidresearch.com/store/ins_ame_101117.htm?sc=LRPR020711_PPAME_PPAME

Tunisia: Orange Tunisie Has a Head Start as 3G Competition Heats Up: http://www.pyramidresearch.com/store/CIRTUNISIA.htm?sc=LRPR020711_PPAME_PPAME

Written by Pyramid analysts, Pyramid Points are complimentary online notes that provide insight into market, business and regulatory developments in the global telecom industry, based on key findings from Pyramid’s renowned forecast services. View all Pyramid Points here: http://www.pyramidresearch.com/points.htm.

For more information about Pyramid Research's products and services, please visit www.pyr.com.

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