CAIRO: Intel, which raked in a record $40 billion in revenue this year, is eager to watch that figure expand by entering adjacent markets in not just advanced economies but in Egypt, as well.
“Egypt is one of the highest growth markets in the region,” Taha Khalifa, general manager for Intel’s Egyptian operations, said in a one-on-one interview at the firm’s local headquarters in Cairo.
He pointed out that the ICT reforms that kicked off implementation five years ago have started to bear their fruit.
Khalifa also pointed out that PC growth in Egypt is over 30 percent, which has been the result of the rapid uptake of broadband connections thanks to the government’s effort to expand internet infrastructure.
“In terms of ICT indicators, ADSL subscribers are now around 1.2 million, representing a 40 percent growth rate, as well there being over 1 million 3G USB users,” he said.
Thus, there are over 2 million broadband users, which represents a five-fold increase over the past 2–3 years.
Notwithstanding his veneer of steadfast confidence regarding ICT expansion in Egypt, Khalifa admitted that hurdles remain.
To be sure, no emerging market comes without its own set of impasses, such as inadequate infrastructure, illiteracy and the like.
As many ICT experts and commentators have lamented, the level of Arabic content online remains disproportionately low relative to other major languages, representing a feeble 2 percent of the total content online.
He also noted that it is imperative that areas outside of Alexandria and Cairo be better connected with internet infrastructure so as to ensure further broadband uptake, which will in turn help consumers of these more remote areas link up with the “internet economy.”
Khalifa acknowledged that the troublingly high illiteracy rate – 30-40 percent – is an issue about which Intel is “concerned.”
Nevertheless, his firm is particularly eager to capitalize on the growth of smart gadgets – devices that are connected to the internet – which Intel predicts will reach 10 billion devices by 2015, Khalifa stated.
He also pointed out that by 2015 there will be an additional 1 billion worldwide connected to the internet.
Intel, he says, is “sure” that it will win “a good share of this growth” in Egypt and in other parts of the globe.
Thus, in view of Egypt’s burgeoning young population of increasingly PC and internet savvy consumers, Intel is further positioning itself to stake a claim in a segment of the local market.
Part of its 2011 ‘glocal’ strategy, Khalifa says, is to capitalize on the growing trend toward adjacent markets, specifically mobile applications – a sector with “lots of potential,” with the goal of continuing to foster the “always connected paradigm.”
As such, Khalifa explained, that Intel is taking the necessary steps to ensure that his firm is present when personal computing is integrated into “nearly every type of electronic device,” which includes netbooks, smart TVs, in-vehicle infotainment as well as a myriad of consumer electronic devices and connected and embedded machines.
To this end, as well as to ensure that Egypt is not only a strong consumer base for the country, but also one in which intellectual property is developed, Intel has engaged in a number of initiatives with the government.
Khalifa pointed out that Intel will seek to collaborate with the newly launched multi-billion dollar Technology, Innovation and Entrepreneurship Centre in Smart Village, whose objective is to catapult Egypt into the ICT forefront.
In addition the firm has established affiliations with several Egyptian universities, such as Alexandria University and Nile University, where the focus centers on low-power circuit and system design.
In parallel, Intel has been collaborating with the Information Technology Industry Development Agency (ITIDA) in order to help equip local software developers with the latest Intel technology, with the aim of driving the development and innovation of homegrown software.
Khalifa, as well as many other industry insiders, are especially excited about the potential of cloud computing to transform the ICT landscape within the next few years.
Given its potential, he said, “We better work to make sure that it comes to Egypt.”
