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VAS Penetration in Egypt to reach 92% by 2017.

According to a report published by Frost & Sullivan, mobile operators are moving from simple voice to more value-added and data services in Egypt. The value-added services (VAS) subscriber base is projected to increase at a compounded annual growth rate of 8.46% and will reach 93.5-million by 2017. As of June 2011, Egypt has had a VAS penetration of 77%. This figure is likely to tip the scales at 92% by 2017.

Egypt has seen a massive subscriber growth in recent years, hugely due to affordability and, features like enhanced 3G support and price-competitive services offered by telcos in the region. Operators feel that with revenues dropping in basic voice communication, VAS will be the new cash cow. Along with the relaxation in government policies, accessibility to high-speed data services and more innovative applications and services will propel growth in the Egyptian VAS market.

The report further details that VAS revenues will reach $3.8 billion by 2017 with VAS and data services accounting for nearly 50% of operator revenues in Egypt. "In a region which is witnessing high competition and declining average rate per user (ARPU), innovative value-added services would help operators remain profitable and retain customers. By 2016, VAS will contribute to more than 50% of the operators' revenues in Egypt. Services like Mobile Banking and Commerce and Mobile Social Media have the potential to revolutionise the Egyptian VAS industry", says a Frost & Sullivan information and communication technologies expert.

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Geographic Code:7EGYP
Date:Jan 2, 2012
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