The Mobile Phone Industry and Economic Development : A Case Study on Egypt

There is ample evidence that the telecommunications industry can provide a big push development strategy for the Egyptian economy. Pressed by unemployment and poverty concerns, the economy is in need of a role model industry to provide adequate infrastructure development and a rising entrepreneurship spirit for others to follow. The mobile industry in Egypt has the potential to deliver such a big push tactic if viewed from an economic development angle. It is the purpose of this report to analyze the mobile industry in Egypt as a case study to a promising economic development impact on the national economy with strong regional implications. The report is divided into several sections. The first section discusses general performance of the Egyptian economy including the use of telecommunication sector initiatives for solving the country's main economic problems. This is followed by a more specific analysis of the Egyptian mobile industry including labor productivity and financial return valuations. The current impact and future potential of Egypt's mobile industry on the economic development path of the Egyptian economy is then analyzed more fully by a discussion of key factors needed for enhancement of the industry. These include job creation, market competition, use of technology, regulation, social and community development, and macro development issues. Regional implications are then discussed followed by a conclusion section