In an effort to promote new clients and increase customer penetration in Egypt, the state-owned Telecom Egypt announced it would exempt new customers from paying installation fees.
The move, CFO Hassan Helmy told reporters, was in the hope of creating the means of attracting new customers to what has become an increasingly stale market in the country following the January/February protests that ousted the government.
Many analysts have repeatedly said that Egyptians are looking to mobile technology as the future and Telecom Egypt has been on the outs of the push to increase IT and telecom in the country, despite their monopoly on fixed lines.
“What we are seeing on the ground today is the fact that most Egyptians are looking to get into the mobile sector and this means that landlines are becoming a thing of the past, but TE is trying to create new structures that will allow this market to flourish once again,” said Hassan Fahmy, an analyst at Egypt’s Stock Market.
Helmy added that the promotion would last for up to three months. In March, the company reported a fourth quarter net profit of 581 million Egyptian pounds, or US$98 million, which was the result of wholesales and Internet and data services.
Many analysts believe this profit margin will not continue in the current climate without concerted efforts to change the current make-up of fees and installation.
By Desmond Shephard