CAIRO: Egypt’s newly launched mobile number portability (MNP) services will prompt mobile operators to offer better quality services to add more subscribers into their pool, said Vodafone Egypt officials.
“The new service allows subscribers to easily switch to their network of preference. Prior to launching the service, there existed some sort of restraint over the number, but now users feel that the number is no longer an obstacle, said Hany Mahmoud, vice president of corporate affairs at Vodafone Egypt.
“At the same time, mobile operators will improve services to attract more users.
The MNP service – launched Monday – offers mobile phone users the flexibility to switch from one mobile network to another for a LE 75 fee. The new service enables mobile users to retain their mobile phone numbers while making the switch. The National Telecom Regulatory Authority (NTRA) has stipulated that users remain with their original network operator for at least one year before being allowed to use the new service.
Vodafone Egypt is quite upbeat on the new service after pouring in heavy investments in infrastructure to enhance capacity of its network – bringing total number of network stations to 5,400 – in preparation for any subscriber upsurge.
“No one can foresee consumer behavior, but any switch will depend on operator’s promotions and quality of service. Each company says its subscribers are going to increase, but no one really knows what will happen, Mahmoud pointed out.
He explained that international data shows that MNP switch rates range between plus/minus three percent. The main catchphrase to win the MNP race, he stated, is better service quality and coverage rather than cheaper prices.
“The decision to make the switch will not be based on lower pricing as much as on service quality and coverage. At the end of the day, the three mobile operators want to make profits.and therefore will not be able to heavily drop prices because they could lose, he said.
“Mobile tariff rates are already low in Egypt. The country is the second lowest after India. That is why, if prices further decline, quality of service will be adversely affected, he added.
Egypt’s mobile phone market has been hailed an evergreen success story, with only three operators serving the Arab world’s most populous country.
According to the Ministry of Communication and Information Technology, number of mobile phone subscribers reached 30.047 million, at the end of 2007, up from 18.001 million at the end of 2006. Mobile penetration was at 40.6 percent of the population at year-end and is expected to exceed 50 percent at the end of this year.
Number of mobile phone subscribers has been on the rise, with MobiNil grabbing the biggest share at more than 15.1 million subscribers.Vodafone Egypt comes second at 14.2 million subscribers, while Etisalat Egypt has managed to pull in around 1.3 million subscribers since it began operations last May.
Meanwhile, Vodafone Egypt has expressed no interest whatsoever in bidding for Egypt’s second landline license. “There is no reason for us to buy the second fixed-line license, Mahmoud explained. “Our partnership with Telecom Egypt provides us with all facilities given to a fixed-line operator, and our [full] acquisition of Raya Telecom maintains our data communication. Otherwise, Vodafone Egypt would have definitely entered into the bid.
The NTRA said it would auction Egypt’s second landline license on June 19, bringing Egypt one step closer to ending the monopoly of state-run Telecom Egypt, currently the country s sole fixed-line operator.
So far, around six companies have expressed interest in buying the license.
These include a consortium of Orascom Telecom and France Telecom, Egypt s Alkan, Egypt s Giza Systems, Emirate-based Etisalat, and Saudi s Atheeb group.
