Telecom Egypt SWOT Analysis, Competitors & USP

Ministry of Communications and Information Technology (MCIT)

Mobile Service Provider

Telecom Service Providers

One Network…Uniting us

Telecom Egypt is the country’s sole fixed line operator

Telecom Egypt provides fixed line telephony, mobile services, infrastructure and transport services, voice and data services, and hosting.

Retail and wholesale

It serves a total subscriber base of 8.6 million translating into a fixed and household penetration rate of 9.4% and 55.2% assuming 90% of the lines are residential. The company has a fixed line subscriber base in excess of 12 million subscribers, which makes it the largest fixed line provider in the Middle East and Africa.

Below are the Strengths in the SWOT Analysis of Telecom Egypt:

1. Diversified revenue base that aids in offsetting unforeseen weaknesses.
2. Contained cash flow volatility helping it to fare better.
3. High cash reserves serving as a buffer.

Here are the weaknesses in the Telecom Egypt SWOT Analysis:

1. Rising costs led by the socio-economic dissatisfaction
2. Unpredicted outcome of the salary restructuring scheme
3. Falling trend of EBITDA margins
4. MVNO license to further impact EBITDA margins

Following are the Opportunities in Telecom Egypt SWOT Analysis:

1. Ability of upgrading dividend payout
2. Geared up to become a full-fledged entity offering bundled services

The threats in the SWOT Analysis of Telecom Egypt are as mentioned:

1. Licensing international gateways to mobile operators
2. Heightened political/security risks in Egypt
3. Devaluation of currency due to deterioration in foreign reserves and balance of payments

Below are the top 3 competitors of Telecom Egypt:

1. Orascom Telecom
2. Etisalat
3. Orange S A