Internet companies in renewed conflict

By Mohamed Alaa El-Din

ADSL companies are caught in a new conflict over attracting customers, with major competition in launching low-priced offers, hoping to attract new user segments. Some companies have offered new prices as temporary offers, while other companies are offering permanent price packages.

TE Data initially began the competition with low Internet prices, making use of the fact that it is the investment arm of Telecom Egypt (TE) in the field of Internet services, which owns all telecommunications infrastructure in Egypt.

The company offered a price package of EGP 50 for 1 mbps speed Internet with a 10 GB download cap. Vodafone followed in TE Data’s suit by presenting a new pricing system for almost the same price, at EGP 50.5 for 1 MB and a 10 GB download cap.

Further, despite opposing the prices set by TE to rent telecomm infrastructure, the other internet companies were forced to lower their ADSL prices, to counter TE Data’s acquisition of the largest share of new customers, taking into consideration that it already has about 70% of the ADSL customers.

LinkDSL, owned by Mobinil, offered a lower package in comparison with the two companies above. However, it presented it as a temporary offer for only six months, whereby it offered Internet packages with 2 mbps speed and a 5 GB cap for EGP 52. Etisalat Egypt also offered temporary contracts for 1 mbps speed Internet with 10 GB download capacity for EGP 95.

Etisalat has demanded the decrease of infrastructure rental prices, to allow private ADSL companies to reduce their prices while maintaining profit. It further announced that it will cancel its discounted offer if its demands are not met, described TE’s practices as monopolisation of the sector’s infrastructure.

Noor ADSL is the latest arrival to the low-price ADSL conflict, whereby it made a temporary offer, for 1 mbps sped Internet with a 20 GB download capacity, double the competitors, for EGP 39.

Fadi Jundi, President and CEO of Noor ADSL, told Daily News Egypt, the company will focus in the upcoming period on offering its services to individuals, aiming to acquire 5% of the ADSL market. He added that the company controls the largest share of internet services offered to the commercial and business sectors.

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