copyright © 2004 sherif kamel egypt goes online sherif kamel the american university in cairo
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Copyright © 2004 Sherif Kamel
Information society and emerging global trends related to technology, business and the economy
Massive developments in the areas of information, computing and internetworking
Role of IT innovations as a window of opportunity to leverage business and socioeconomic development
Growing interest in Egypt to develop its national information infrastructure (NII)
Egypt goes online
Copyright © 2004 Sherif Kamel
History with information An information flow taking place for over 5,000 years (Ancient
History)
First largest and most famous library worldwide (Alexandrina)
Arab Manuscripts on Papyrus papers (Middle Ages)
Printing and publishing of papers in the 19th century starting with the 1st journal in 1826 (Modern Ages)
First telecommunication signal was in Alexandria in 1854
In the 20th century, since 1985 a focus on the Information Society
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National information and administrative reform initiative
Programs Year
Open door policy 1974
Economic reform program 1985
Information and decision support program 1985
1989
Building Egypt’s information infrastructure 1994
Formulating Egypt’s knowledge-based society 1999
Addressing ICT issues at the cabinet level 2004
Information road-map
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Civilization dating back to 3000 BC Population of 70 million (58% under the age of 25) 1 Million Km2 (4% only is inhabited) Literacy rate 58% (8% computer literacy) US$ 1,000+ per capita income (Global Credit Research, 2003)
5.5% inflation rate 3.2% GDP growth
Egypt
www.idsc.gov.eg
Egypt in numbers
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ICT building blocks [1985-Present]
1. Information base building
[Information]2. Human resources development
[Knowledge and User]3. Infrastructure development
[Technology]4. Business development
[Facilitator]
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Investing in people
16 million+ in education Schools 14.5 Million (1.2+ million graduates in
2004) University 1.2 Million (250000+ graduates
annually) Post-Graduate Education 300000
Ranked 17th worldwide in number of yearly graduates
13Universities
13Universities
66Institutes
66Institutes
Government
Private 5Universities
5Universities
61Institutes
61Institutes
18+ Universities127 Institutes
18+ Universities127 Institutes
www.mcit.gov.eg
Copyright © 2004 Sherif Kamel
Education empowerment
Provision of affordable PCs, software and Internet connectivity for students.
Introducing computers in school education (bottom-up) – Kids clubs, schools and universities.
Many access centers in universities and schools Integrating IT in curricula development Establishing Information Technology Institutes
(ITIs). Training of trainers
o Financed by the government and the private sector.
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www.idsc.gov.eg
Community awareness
Establishment of over 1375 IT training centers (mass end users literacy centers) with 8-10 PCs in each
TV/Satellite/Video “Media-Driven Society” Government subsidized Internet Cafes [300 in
2001, focus on low income communities] Introducing the TACC Model [Technology
Awareness Community Centers]
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11.8 Million telephone lines with massive opportunities for growth (elimination of years-long waiting lists for landlines)
6.7+ mobile phones (2 operators since Nov 1997) 48,800+ Public Phones (Pre-Paid Cards, since January
1999 17% compound annual growth in telecommunications
Communications Facts
www.mcit.gov.eg
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Projects introduced
Free Internet initiative (January 2002) which boosted the Internet users from 400000 in 1999 to 3.6 million (1.1 million households) in 2004o ISPs collect their revenues as a percentage of the telephone call
cost (currently 70%).o Plan is to reach 1.6 million households = 5.5 million users (2005)
Establishment of over 970 IT clubs for communities across the different 26 provinces (mostly in rural and poor areas)
www.mcit.gov.eg
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Projects introduced
PC for every home project allowing the purchase of computers on installments and at affordable priceso 76000+ sold in the first month, plan is to penetrate 200000
households annually
2% computer penetration rate (2002) Problem in financing purchasing computers (need a
system based on installments NOT cash) Collateral could be the land line (guaranteed by Telecom
Egypt) Computer prices range between LE230-3400 (10% is
paid as down payment, monthly installment of LE70-100)
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Projects introduced
Broadband initiativeo May 2004 – widen utilization of ICT in Egypto LE150 per month for connectivityo 9 companies cooperating with Telecom Egypt for service
provision
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Business development Challenge
o Develop the use of communications and information technology to serve Egypt’s development objectives (build the industry) Over 1100 firms in the industry in 2004 (350% growth rate
from 1999). Average employees per firm (15-50). Over 270K-350K PCs sold annually. 35% of domestic annual growth in IT products and services 200% of annual growth rate in exports (mainly to Arab
Countries – Arabization of Software). GOE is the largest user with 25% of total IT consumption.
www.mcit.gov.eg
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Role of government in Internet diffusion Government subsidized Internet Cafés
o Created in youth centers, public librarieso Schools and NGOso Focusing on deprived and low income communities o Establish Internet Caféo Technology access centers
Building Smart Villageso Software developmento Information technology serviceso Consultationo Assembly manufacturing of computers and peripheralso Training o Business development
First Project – Pyramids Smart Village
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Components of Egypt’sInformation Society
eReadiness eBusiness eLearning eHealth eHeritage CIT-Industry Development eGoverment
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ExampleeReadiness
Indicator 2004 2007 Annual rateof growth
Internet users 3.6 million users 7 million users 48.57%
PCs 1.5 million PCs 3 million PCs 50%
IT clubs 1000 clubs 3000 clubs 66.67%
BroadbandSubscribers
15000 500000 956%
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ExampleeBusiness
Providing the necessary legislation for electronic transactions
National Postal Authorityo Leading eBusiness example in Egypt
Postal checks = LE149 million Pensions = LE3.08 million payees (LE832 million per
month) Savings accounts = 12.1 million customers (LE 28.7
billion) Service outlets = 3391 government offices, 5549 non-
government outlets
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ExampleeLearning
Spreading knowledge through a hybrid of interactive models
Integrating ICT in the educational system Developing experts in advanced ICT (certified by leading
ICT multinationals) Establishing smart schools (state-of-the-art
infrastructure) – 12000 schools were connected in 2003 Establishing eLearning centers
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ExampleeHealth
Establishing a network for telemedicine Setting up a data warehouse for medical records
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ExampleeHeritage
Establishing an information-base for Egyptian civilization and natural preservation
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ExampleCIT Industry Development
Promoting exports Outsourcing Developing centers of excellence in software engineering
o Use of the Smart village 300 acres 54 companies (25000-30000 job openings)
o Moving MCIT, TRA, and CASE to the Smart Villageo Microsoft, Alcatel, Vodafone and Ericsson are thereo Should be generating 250-300 million US dollars within 5 years
Investment incentives (tax exemptions)
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Egypt’s Vision [1999-2009]
Establish a long-term ICT infrastructure development plan Government-private sector partnership for the development of the
ICT sector Invest in human resources (build a knowledge-based society) To minimize the “digital divide” between rich and poor, urban and
rural areas, men and women, young and old Forging alliances with multinationals Developing an increasing local market need Encouraging venture capital financing Promoting incubators start-ups Investing in high-tech industries Building an online business environment
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New prospects
New telecommunications act expected in 2005 Electronic signature bill was signed in April 2004
o Allowing the use of electronic signatures in financial transactions
Telecommunication sector to be fully liberalized by the end of 2005
Establishing the Authority for IT Industry Development to handle all matters relating to eBusiness