Telecom Egypt (TE) attracted 2.3 million subscribers to its mobile services in less than three months, from when the service was launched in mid-September 2017 to the end of that year.
According to analysts in the capital market, Telecom Egypt, at the beginning of its entry into the mobile market, relied on the human tendency to change and sought to portray a better image of the new network to customers. Moreover, the company’s weight in landline and internet services contributed to its solid penetration of the mobile market.
They added that TE did not bet on a certain category or segment of society and has not yet provided monthly subscription services to companies or business customers, which improves the chances of growth in the coming period when these services are offered.
TE benefited from the National Telecommunications Regulatory Authority (NTRA) decision, when entering the mobile market, to amend credit levels of recharge scratch cards, through using government incentives for it being a new operator, launching its services at the prices prior to the decision.
The NTRA had decided to reduce the balance granted on scratch cards in September 2017, which means the cards offer 70% in balance of their value.
TE focused on Greater Cairo, so its lines were sold out within one month of launching the service. Te company again benefited from the situation on the ground, witnessing great demand that caused it to move lines from other governorates back to Cairo and also authorising the distribution of further lines.
Analysts have rejected the idea of market saturation, especially as mobile customers are increasing each month, in contrast to the recent scaling down of activity with increasing sales and buying.