Telecom companies in Egypt are preparing for another round of tariff increases after the National Telecom Regulatory Authority (NTRA) granted preliminary approval for price hikes. This decision comes in response to rising operational costs, fueled by inflation, surging energy prices, and a 70% increase in import expenses. Providers such as Vodafone, Orange, Etisalat, and WE have already raised tariffs by 10–15% earlier this year, marking the first increase since 2017.
The additional hikes are aimed at sustaining infrastructure investments, such as the rollout of 5G networks, while maintaining profitability. However, this marks the second significant increase in 2024, sparking concerns about the affordability of services amidst Egypt’s economic challenges. While some argue these adjustments are essential for long-term sector growth and innovation, others worry about their impact on consumers already struggling with inflation.
Despite these concerns, Egypt’s ICT sector continues to thrive, achieving a growth rate of 14.4% in 2023/2024. Balancing affordability with the need for infrastructure and service upgrades will be critical for sustaining this momentum and ensuring the telecom industry’s growth does not alienate its customer base.
