BROADBAND FUTURE IN EGYPT

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BROADBAND FUTURE IN EGYPT
Tarek Saadawi MCIT Consultant City University of
New York MCIT EXPAT Event Teaneck, NJ, USA June
24, 2006
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Agenda

• Egypt Networking Infrastructure
• Access
• Core (Backbone)
• Major Changes in Egypts Telecom Sector
• Broadband Access (DSL and Others)
• Media Conversion and Opportunities
• Summary and Recommendation

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Nationwide Fiber Transmission Network of Egypt
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Major Changes in Egypts Telecom Sector

• Far reaching deregulations
• Adoption of New Telecom Act
• Loop unbundling
• Third mobile operator, International voice
  licensing
• Licensing of various services (VSAT, ISP, DSL,
  etc.)
• Adoption of e-signature law
• Evolution of Egypts telecom infrastructure
• the deployment and acquisition of state of the
  art networking technology
• Packetized voice in the core network
• ATM at the edge of the network
• Modem pooling provided for technical platform for
  all ISPs (and the free-internet), as well as the
  establishment of IXP in Egypt
• CDMA WLL
• Broadband Access
• ADSL , Wi Fi / Wi-Max, Cable TV (CATV), VDSL
  and FTTP
• Last Mile Access (leveraging underground
  utilities infrastructure)
• Others (3G mobile, LMDS/MMDS.)
• Voice over IP
• IP-Centrex, VoIP over DSL, VoIP International,
  VoIP in TEs core network

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Major Components of Egypt Telecom Infrastructure

• ACCESS NETWORK
• Continue the deployment of modem pooling for the
  Free Internet model.
• Continue aggressively with unbundling and DSLAM
  co-location as the base for ADSL initiative.
• Wireless Local Loop deployment spcially in rural
  areas and the establishment of the Universal
  Service Fund
• CORE/EDGE NETWORK
• Continue to deploy packetized IP-based core
  infrastructure for aggregated voice and data
  services (NGN).
• Deployment of IP/ATM edge network for
  mutliservice environment in rural areas.
• Expand on Optical-Ethernet capabilities for
  aggregated services.
• Deploy IP-soft switch and implement IP-centrex
  for business applications (NGN).

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Internet is spreading across Egypt
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Emergence of Telecom Liberalization in Developing
Countries

• Thirty-seven of the 156 developing countries (as
  classified by the World Bank) have adopted full
  competition.
• Thirty three developing countries (21 ) that
  are classified as having "partial competition" in
  international communications

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Evaluation and Comparison of Alternative
International Entry Strategies

• Criteria
• WTO Compliance
• Economic Efficiency
• Enhancing Internet Data
• Protecting Foreign Exchange Earnings
• Avoiding Rate Shock
• Fairness and Transparancy
• Options
• Open Entry
• Staggered Beauty contest
• Auction
• Consortium
• Single ooperator
• Single Consortium

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Evaluation and Comparison of Alternative
International Entry Strategies
Rankings excellent, good, fair, weak, poor.
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DSL Timeline in Egypt
2000
2004
2002
2003
2006
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DSL

• DSL is the most common broadband access method
  in the world today and is evolving to higher
  speeds and longer reach as evidenced by the
  development of ADSL2, and VDSL.
• ADSL2 can provide 12 Mbps up to 5000 ft (1.5 km)
  distance, and 24 Mbps over the same distance by
  bonding two copper pairs.
• VDSL can provide 20-25 Mbps up to 3000 ft (0.9
  km) distance over one twisted copper pair.
• Example 2 Standard Definition video channels,
  High Speed Internet Access and one voice call,
  3-4 Mbps on the DSL line would be sufficient.

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International Bandwidth

• It contributes about 30 (about 50 LE) of a basic
  DSL line cost (150 L.E.)
• Opening up the International voice competition
  and the International Fiber Landing Points

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Lack of Arabic Contents on the Internet

• The vast majority of Internet sites that exist
  today are in English. There are some Arabic
  language sites, but they offer a limited set of
  options
• MCIT/MAD are playing critical role through
  working with the Government agencies to create
  on-line applications, educate government workers
  on how to use the Internet and establish PC
  initiatives
• Ministry of Media has a vast amount of media
  contents that can provide many new services, new
  applications, and new opportunities.

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Arabic Contents

• Residential Contents (specially for teens young
  professionals)
• Music download
• Film previews
• Video-on-Demand movies (at extra charge)
• Sports portals that provide sports news, results
  and video clips from games
• On-line gaming with a local community of interest
• Business Contents E-Government sites, On-Line
  Banking, etc

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Other Broadband Technology

• WiMAX / WiFi (Internet Café, hotels.)
• CATV
• FTTH (Fiber to the Home)
• Mobile Networks 3 G / 2.5 G
• Wireless Local Loop (WLL, lower speeds)

Egypt Telecommunications Master Plan 2,
2004 Broadband Strategy and Implementation
for Egypt , 2006
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CATV

• Create a pilot program to address and monitor
  Egypts specific issues along five dimensions
  Regulatory, Community, Services, Technical, and
  Financial/ Business Model.
• Provide an acceptable regulatory framework
  promoting implementation and use of CATV
  services
• - Number of licenses, of
  Operators, geographical..?

• Business Model

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Fiber-to-the-Home (FTTH)

• Cases where ADSL2 may not be the best answer
• In new communities, (Laying cost, no need to
  hardened/powered OSP)
• In rural areas, loop distances can be long hence
  necessitating putting DSLAMs in the outside plan
• Multi-dwelling unit (MDU) using a PON terminating
  on a small DSLAM located in the MDU.
• More Bandwidth (more than 10 Mbps per
  subscriber).
• Two leading Approaches
• Ethernet Passive Optical Network (E-PON)
• Gigabit Passive Optical Network (G-PON)

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CONVERGENCE

• The traditional separate distinctions between
  broadcasting and ICT are becoming increasingly
  blurred.
• Convergence refers to the process by which
  communications networks and services (previously
  were separate) are being transformed such that
• Different network platforms carry a similar range
  of voice, video (audiovisual) data transmission
  services (Broadband Internet, 3G mobile,
  wireless, etc., e.g., radio streaming over the
  Internet)
• Different Consumer appliances receive a similar
  range of services (PC, laptop, PDA, cell phone,
  DTV, PSP, etc.)
• New services are being created (VOD, video phone,
  multi-players online gaming, ..etc.)
• __________________________________
• OECD Definition

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The Battle to shape the home communications/entert
ainment landscape
Satellite dish
Packaged content
DAB
play station
radio
How will they be linked?
PC
mobile
TV
phone
DSL
DVB or cable
wire
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CONVERGENCE (continued)

• Enabling Technology
• Move from Analog to digital (digital TV, digital
  cable, digital satellite..)
• Improvement in network speed
• Compression techniques and storage capacity
• Growing range of wireless applications
• Advantages
• Increased competition across delivery networks
  and between services
• Reduce access bottlenecks (services are delivered
  over number of platforms e.g., soccer games in
  different places)
• Create new services and stimulate innovations
  (and new entrants)
• The importance of efficient management of
  frequency spectrum, including reassessment of the
  current uses of the spectrum is increasing

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New Applications for ISPs

• Voice-over-IP
• Domestic VoIP-VPN
• Domestic VoIP-PSTN
• International VoIP
• IP-TV

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Some Triple Play Issues

• The VoIP components of Triple Play should be
  subject to new VoIP regulations
• The service provider shouldnt impose any
  restrictions on the content provider and
  visa-versa.
• Packaging of contents may be done by various
  entities The studios, TV broadcast stations,
  specialized private companies, etc.
• The Decency Law should be extended to the
  contents offered by DSL.

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SUMMARY

• Summary
• There are number of initiatives in the ICT sector
• (e-learning, e-health, media conversion,
  Industrial automation.)
• Media conversion is a new industry and in its
  infant stage
• Opportunities exist in
• new infrastructure,
• Content aggregation,
• Multimedia Web-portals,
• e-commerce, etc.

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THANK YOU