Creating the climate for a wave of digital sea change

Creating the climate for a wave of digital sea change

Telecom Egypt Capacity Africa article CEO Photo (Sep 2024 issue).jpg
Mohamed Nasr, Managing Director and Chief Executive Officer at Telecom Egypt

Telecom Egypt’s CEO says new cables supporting AI and the cloud present enormous prospects for Africa.

How do you view the current climate for communications and connectivity in Africa?

Africa’s telecommunications story is one of rapid evolution amid significant challenges and opportunities. Over the past decade, the continent has witnessed substantial growth in communications, with penetration rates soaring even in remote areas.

This digital surge has connected millions of people previously excluded from traditional telecommunications, spurred economic activities and facilitated access to essential services like healthcare and education.

However, challenges such as infrastructure deficits, regulatory barriers and affordability constraints persist in many regions, hindering the full potential of telecommunications to drive socioeconomic development.

In this climate, broadband penetration remains uneven across Africa, with urban centres typically enjoying higher access rates than rural areas. This digital divide exacerbates disparities in access to information and opportunities, limiting the continent's ability to fully harness the benefits of digital transformation.

What prospects does the region have for the future given these challenges?

Efforts are under way to address these challenges, with initiatives focusing on expanding internet infrastructure, promoting digital literacy and fostering regulatory environments conducive to investment and innovation.

Africa also has the youngest and fastest-growing population in the world, indicating a youthful society ready to drive the region in new technological directions. In Egypt, for instance, nearly 60% of the population is under the age of 30, creating a huge demand for digital learning opportunities. As a key hub between the Far East, Middle East, Africa and Europe, we believe we have a central responsibility to connect both Africa and the world to help realise the full digital potential of both individuals and enterprises.

As Africa continues to urbanise and modernise, our commitment to bridging the gaps and empowering communities remains pivotal in shaping the continent's future trajectory in the global digital economy. With the overarching development schemes we are witnessing in the region, we see a tremendous opportunity to meet these needs and take connectivity in Africa to the next level through innovative initiatives and cutting-edge projects.

What is Telecom Egypt’s general strategy for promoting communications in Africa?

Throughout our long history, our strategy has been to capitalise on our geographical position as a central transit point by continuously expanding and diversifying our infrastructure, which today carries more than 225Tbps and growing of international traffic from East to West.

We host 15 in-service subsea cables landing in Egypt, with plans for at least six more to land in the coming years. This infrastructure connects to the terrestrial routes between the Red Sea and Mediterranean, with 14 subsea systems crossing the country and five cable landing stations on each coast.

Through our rollouts, we strive to provide a wide range of international customers and partners with access to the best routes to help them scale their offerings for burgeoning markets. And this approach has borne fruit, attracting partnerships with more than 170 major global subsea cable players to date.

Telecom Egypt is pursuing a multifaceted strategy to advance communications in Africa, with special emphasis on infrastructure development, strategic partnerships and fostering digital inclusion. We serve the continent by carrying traffic from southern and eastern Africa to Europe across our network.

How do you see the current position of Telecom Egypt since you became CEO last year?

Building on the evolving strategy of Telecom Egypt and in my first 18 months as CEO, I've witnessed significant developments that continue to put us at the forefront of telecommunications in Africa. These include new network initiatives that support advances in cloud services, gaming and AI applications.

Central to our strategy is the expansion of our subsea cable infrastructure to accommodate the growing 225-plus Tbps of traffic exchanged across our network in Egypt to serve not only the African but also the global digital economy. With a robust infrastructure and strategic investments in subsea cables, Telecom Egypt has been instrumental in bridging the digital divide and driving economic growth in the region.

We have also expanded our subsea investments towards West Africa, recognising the need for a subsea cable to link that area to Europe. As seen, our investment in the Equiano cable proved crucial during the multiple cable cuts off the west coast of Africa earlier this year, as it was one of the main systems that carried the rerouted traffic.

Our involvement in the Equiano subsea system underscores Telecom Egypt’s commitment to enhancing communications and connectivity across Africa. We are investing wherever and whenever there is a need to develop a new subsea network.

Can you outline some of the other infrastructure developments that have helped Telecom Egypt further its goals since last year?

During 2023 and 2024, Telecom Egypt has significantly expanded its subsea infrastructure, enhancing connectivity options for customers across the region. The commissioning of two new subsea systems, 2Africa and Equiano, increased our operational subsea systems from 14 to 16.

Furthermore, we have partnered to add three new subsea systems to our development plans – Coral Bridge, EAGLE and ICE IV Project – bringing the total number of planned systems to six. This growth is complemented by the establishment of new cable landing stations in Taba, Sharm El Sheikh, a second one in Port Said and a fourth that is yet to be announced, increasing the total number of Telecom Egypt's landing stations from 10 to 14.

Can you update us on Telecom Egypt’s recent innovations that serve its overarching strategy?

Over the past year, we have launched several transformative projects and initiatives. Notably, in September 2023, Telecom Egypt introduced WeConnect, an open and neutral ecosystem that integrates more than 21 operational and planned subsea systems, 10 cable landing stations and 10 diverse crossing routes.

WeConnect provides partners with extensive connectivity options without requiring additional infrastructure investments, giving users an agile and commercially appealing way to mix and match connectivity between subsea cable systems in the Mediterranean and Red Sea. Alongside our moves to extend infrastructure, the ecosystem creates a framework for customers to capitalise on the many different transit options available.

In addition, the company has played a significant role in Egypt's development by contributing to the ‘Hayah Karima’ initiative aimed at reducing the digital divide and promoting inclusive growth. We have implemented advanced technologies, expanded broadband coverage and boosted network capacity to support education, healthcare, economic empowerment and social development.

Furthermore, Telecom Egypt's involvement in the initiative has included connecting rural homes with fibre-optic cables, enhancing mobile coverage and capacity through tower upgrades, and deploying fibre-optic networks for government offices to improve communications and ensure resilient services.

What are Telecom Egypt’s plans for the rest of the year and beyond?

We will continue to focus on providing an effective East-West hub through our ever-expanding infrastructure builds and the completion of new cable landing stations, as well as maximising connectivity for customers in the digital age. As the year progresses, we will also gear efforts towards improving our cost efficiency and monetising our assets.

Meanwhile, we have delivered positive financial results even in the face of myriad macroeconomic challenges, setting us up well for the road ahead and giving us the platform to enable further network growth.

Looking ahead, Telecom Egypt will continue to leverage emerging technologies. Through strategic investments in subsea cable infrastructure, innovative partnerships and pioneering initiatives, we will remain at the forefront of empowering communities and businesses with unparalleled connectivity solutions.

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