The telecom sector in Egypt is preparing for price hikes, as the National Telecom Regulatory Authority NTRA has granted preliminary approval for mobile service cost increases. This decision comes in response to rising operational expenses faced by telecom providers like Vodafone, Orange, Etisalat, and WE, which have seen their costs soar due to inflation, higher energy prices, and a 70 increase in import expenses.
Earlier this year, telecom providers raised tariffs by 10-15 in February, marking the first such increase since 2017. The upcoming price hikes are aimed at supporting investments in infrastructure upgrades, such as the rollout of 5G networks, and ensuring the sector's profitability. However, this marks the second significant price increase in 2024, raising concerns about the affordability of services for consumers amid ongoing economic challenges.
While some critics argue that the timing of the hike may exacerbate financial pressure on users, others emphasize that sustainable pricing is essential for the sector's long-term growth and innovation. With Egypt's ICT sector experiencing strong growth, including a 14.4 increase in 2023/2024, the challenge is balancing these price adjustments with customer retention to maintain the industry's momentum.
